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Toray to Purchase TenCate Advanced Composites Holding B.V.

News International-French

14 Mar 2018

Toray Industries, Inc. announced that on March 14, 2018, it reached an agreement with Koninklijke Ten Cate B.V. (KTC) to purchase the entire share of its subsidiary TenCate Advanced Composites Holding B.V. (TCAC) , a Dutch carbon fiber composite material manufacturer.

Mr Akihiro Nikkaku, President of Toray Industries (Copyright: Financial Times)
Toray and KTC plan to sign without delay a share purchase agreement on this acquisition after completing discussions with the Works Council, as stipulated by Dutch laws.

The acquisition will be carried out based on the premise of receiving approval, etc. from the regulatory authorities.

Background
The global carbon fiber business field has been expanding steadily led by the demand for applications such as aircraft as well as environment and energy including windmill blades for wind power generation. In the aircraft industry, 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. It is assumed that the use of thermoplastic prepreg will further increase for medium- and small-sized mass-produced aircraft, as the material enables to bring down costs by improving efficiency of molding of members.

In the medium-term management program Project AP-G 2019, launched by Toray in fiscal year 2017, the company is promoting the Green Innovation Business Expansion (GR) Project aimed at contributing to solving global environmental issues and resource and energy problems in a group-wide effort, and Toray is pursuing business expansion and market development of the carbon fiber business as one of the core businesses under the project.

While Toray already has a large number of transactions in the carbon fiber business for aerospace applications, the company was facing the challenge of further technology development in diverse fields including thermoplastic prepreg in addition to the existing thermoset prepreg and the establishment of a business base to respond to the anticipated expansion in demand in aircraft applications.

Objective
TCAC, which Toray has decided to purchase, is a prepreg manufacturer with its main manufacturing bases in Europe and the U.S. and has a track record of widely supplying thermoplastic prepreg and high heat resistance thermoset resin materials. Especially, TCAC is a global leading company of carbon fiber intermediate materials using thermoplastic resins.

The acquisition is expected to generate significant synergies by combining the product lineup in which TCAC specializes with the broad range of carbon fiber as well as polymer technologies, which are Toray's strengths. Combining the two companies' distribution channels, the company can offer a wider product lineup to the customers. Toray will respond swiftly to the expansion of the market for small-sized aircraft and expand the business further for industrial use applications including automobiles in the medium- to long-term.