Japan's Toray to acquire TenCate to boost carbon-fiber business


Japan's Toray to acquire TenCate to boost carbon-fiber business

Thu 22, Mar 2018

Composites industry is one of the most dynamic industries and is governed by multitude of factors making its value chain participants strengthen their positioning and establish their leadership. For the last decade, Merger and Acquisition have been one of the most common strategies adopted by the companies to build new growth avenues.

In yet another development, Japan’s Toray Industries which is the world’s largest maker of carbon-fiber composite materials, said it will buy TenCate Advanced Composites for an enterprise value of 930 million euros ($1.15 billion), as it looks to ramp up its carbon-fiber business.

The deal is in line with Toray’s aim to speed up the development of technology to match growing demand in aircraft applications of carbon fiber.

"The demand for medium- and small-sized, single-aisle aircraft is growing significantly and the development of the next-generation aircraft targeting such demand is expected to intensify," Toray said in a statement (Reference link below).

TenCate manufactures thermoplastic prepreg, a material that improves the efficiency of molding. According to a report from Stratview Research, the thermoplastic composites market in aerospace industry is expected to grow at significant rate topping USD 630 million in annual sales by 2023. This will create a significant demand for composite materials including thermoplastic prepregs. Toray expects demand for the material to increase in line with demand for medium and small-sized mass-produced aircraft.

The deal, which is expected to be completed in the second half of 2018, is subject to approvals by regulators, TenCate said in a separate statement, adding that Toray expects to retain key management of TCAC following completion of the deal.

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News Source: www.toray.com

Reference link: http://www.toray.com/news/carbon/detail.html?key=B38109FC4AB0AF1F49258250005340B3




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