Toray Industries to acquire Zoltek Companies for $ 584 million

In a deal worth about $ 584 million Tokyo-based Toray Industries Inc has agreed to purchase the entire stake in the US-based Zoltek Companies Inc, engaging sales and manufacture of large tow carbon fibres, and make it a wholly owned subsidiary in order to enter into large tow carbon fibre business. The global demand for PAN-based carbon fibres is expected to expand at an annual growth rate of exceeding 15% as an advanced material which contributes not only to energy saving through weight reduction but also to spread of renewable energy as alternative of fuel (oil and coal) energy.
 
On the one hand, regular tow carbon fibre is widely being accepted in the field of high performance/high quality application such as aerospace, but on the other hand, large tow carbon fiber is anticipated to expand its applications, based on its reasonable balance between cost and performance, to wind energy-related which shows rapid demand growth in recent years, and automobile structural parts in future. It is foreseen that demands for regular tow carbon fiber and large tow fibre will grow separately, reflecting each characteristic.
 
ALSO READ: Borealis and Borouge launch fibre-based PP compounds

Toray has showed its presence in the field of advanced applications such as aerospace represented by Boeing 787 and natural gas pressure vessel by concentrating its business resource to high performance/high quality regular tow carbon fibre. Meanwhile, not having large tow carbon fiber as its product line up, Toray has been considering how to address promising growth in commodity industrial field such as wind energy-related application and automobile structural parts application. By acquiring Zoltek, Toray has obtained opportunity for further growth, expanding its business in totally different field from regular tow carbon fibre.