Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • CEO Issue
    • Diversity
    • Best Places to Work
      • 2022 winners
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
      • 2022 class
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
November 11, 1996 01:00 AM

TEXTRON BUYS INTO PLASTIC FUEL TANK MARKET

Michael Lauzon
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Textron Automotive Co. will enter the fast-growing plastic automotive fuel tank market when its parent, Textron Inc., acquires Kautex Werke Reinold Hagen AG of Bonn, Germany. The Troy, Mich., auto parts major expects to get 15 manufacturing plants, including fuel tank facilities in Avilla, Ind., and Windsor, Ontario, and a plant in Mexico due to begin operating early next year. Textron agreed to pay 468 million deutsche marks (US$308 million) in cash, and expects to complete the deal in early 1997, it announced Nov. 7.

    John A. Janitz, Textron Auto-motive chairman, president and chief executive officer, said in a telephone news conference that the purchase reflects his firm's strategy to expand its proprietary plastics technology base. He said Kautex's ability to make its own blow molding machinery is attractive. Janitz claimed Kautex is the world's largest producer of plastic fuel tanks. They account for about 63 percent of Kautex's sales, estimated to total $500 million this year. Janitz said other blow molded auto parts represent 18 percent of sales, and the rest of sales are from containers for commercial and consumer use. Kautex has 2,000 employees.

    Janitz said Kautex mainly makes monolayer fuel tanks for the European market. In North America it blow molds multilayer high density polyethylene tanks with a barrier layer. It developed an alternative to fluorination for barrier properties and will begin commercial production of tanks using the ``proprietary barrier layer'' next month.

    Plastic fuel tanks now have about 37 percent of the North American market and will have about 50 percent by 2000, Janitz predicted. About 70 percent of European tanks now are plastic, and that figure should rise to 75-80 percent by 2000. Japanese automakers hardly use any plastic tanks, but predict they will convert in five to seven years. Kautex just received a Japanese order and expects more.

    Kluckner-Werke AG of Duis-burg, Germany, said the sale of its Kautex subsidiary will help it reach previously announced financial objectives of reducing debt by 30 percent and of doubling its net equity ratio. Kautex CEO Wolfgang Theis said in a news release that Textron will help Kautex expand globally and develop advanced fuel systems. Janitz said Theis will remain CEO of the business.

    The purchase will boost Textron Automotive's sales to more than $2 billion annually. It already is a major supplier of interior systems, exterior trim and functional components. Its only involvement to date in fuel systems has been fuel filter pipes and pump parts.

    In North America, Textron Automotive's main plastic tank competitors include Solvay Automotive and Walbro Corp. About 18 percent of Kautex's sales are in North America, where it holds about a 26 percent share of the plastic tank market, making it the second-largest player. It holds a similar percent of the European market, where Janitz said it is the largest supplier.

    Kautex's main customer is Volkswagen Group, which buys 40 percent of its production. Ford Motor Co., Chrysler Corp., Gen-eral Motors Corp. and BMW are other key accounts. It recently got a new contract with Mer-cedes-Benz. Janitz said Kautex significantly expands Textron's global presence with offshore plants in Germany, Belgium, China, Czech Republic, Spain, Portugal, Brazil and the United Kingdom.

    RECOMMENDED FOR YOU
    Poly-America neighbors sue for $7.8M after 2020 fire, allege respiratory damage
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Industry's newest concern: Public opposition to plastics recycling
    2
    PepsiCo cuts bottle design costs, time with 3D printed mold inserts
    3
    Unsupervised worker blamed for overriding alarms in Michigan chemical spill
    4
    More volatility for North American PS, ABS resin prices
    5
    AdvanSix sees strong sales in Q2, expects healthy demand for nylon in US
    SIGN UP FOR TO RECEIVE THESE EMAILS AND ENEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Urethanes Technology
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • CEO Issue
        • Diversity
        • Best Places to Work
          • 2022 winners
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
          • 2022 class
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified