Teijin Acquires U.S.-Based Car Composites Maker for $825 Millionby
Continental Structural Plastics has 14 facilities worldwide
Targeting $2 billion in automotive composite sales by 2030
Teijin Ltd. agreed to acquire U.S.-based Continental Structural Plastics for $825 million to establish a base in North America for producing lightweight composites for cars.
The Auburn Hills, Michigan-based supplier of glass-fiber reinforced plastic and other materials generated sales of $634 million in 2015, the Osaka, Japan-based company said in a statement on Tuesday.
Teijin is betting that more stringent environmental regulations on pollution will accelerate the move toward lighter materials in cars and build a $2 billion business for automotive composites by 2030. The Japanese maker of chemicals and materials has stepped up acquisitions under Chief Executive Officer Jun Suzuki, who took the helm in January 2014.
“Since being appointed as Teijin’s president in January 2014, I have pursued business models that help provide value-added solutions by combining and integrating our own materials, health-care and IT technologies,” Suzuki said in the statement. “The Teijin Group will continue to evolve.”