Teijin to purchase Continental Structural Plastics

Teijin to purchase Continental Structural Plastics
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Tokyo-based Teijin Ltd. has said it has agreed to acquire Auburn Hills, Michigan-based Continental Structural Plastics Holdings Corp. (CSP), a leading automotive composite supplier in North America, for $825 million. Through the acquisition of CSP, which will become a wholly owned subsidiary, Teijin says it intends to establish the foundations of an automotive composite products business in North America and to accelerate its expansion as a tier 1 supplier to the global automotive market.

Teijin Holdings USA Inc., the Teijin Group’s holding company in the U.S., will purchase the shares of CSP.

The acquisition is scheduled to be completed in December 2016 after customary closing conditions, including regulatory approval, have been satisfied, Teijin says.

CSP is a manufacturer of thermoset composites for the automotive industry and the world’s largest sheet molding compound (SMC) manufacturer for automakers. Since it was established in 1969, CSP has provided leading-edge technologies in lightweight materials and composite solutions such as glass fiber reinforced plastic (GFRP) for the automotive industry, Teijin says. CSP provides full-service engineering support and holds more than 50 patents covering materials development and manufacturing processes in composite materials formulation and design. The Class A surfaces produced by CSP’s SMC technology have been adopted by various automakers in the U.S., Europe and Japan. The company has 14 facilities in the U.S., Mexico, France and China and approximately 3,200 employees. CSP posted consolidated sales of more than $634 million in the fiscal year ending Dec. 31, 2015.

Teijin says it will benefit from CSP’s established sales channels in the North American automotive market, which will enable the combined business to provide a broader range of solutions that meet automakers’ demands for weight reduction and durability, using the company’s thermoplastic composite technologies.

“The integration of CSP’s technical expertise in thermoset composites and Teijin’s leadership in complementary thermoplastics creates significant synergies for comprehensive multimaterial applications to meet diversified demands from the automotive industry,” Teijin says in a news release announcing the purchase. Through this transaction, Teijin will expand its offerings beyond carbon fiber and glass fiber materials in collaboration with other materials manufacturers. The company says it plans to expand its product portfolio from materials to component design, implement a global supply chain and help achieve vehicle weight reductions in order to comply with tighter environmental regulations being introduced after 2020.

The combination of CSP’s thermoset capabilities, especially its GFRP technology, and Teijin’s high-performance composites, such as carbon fiber reinforced thermoplastic (CFRTP), will help reduce weight and component count in finished products, the company says, adding that these capabilities will improve recycling efficiency and offer automakers value-added solutions that meet their requirements for more environmentally friendly components at lower cost. Teijin says it also will use CSP’s European Center for Advanced Technology in France and Teijin’s own composite production facilities to further its global development capabilities, allowing the combined business to better address the requirements of European, Japanese and Asian automakers. The automotive composite products business of the Teijin Group is targeting annual sales of $2 billion by 2030.

Jun Suzuki, president and CEO of Teijin Ltd., says, “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. We are confident that the platform for automotive composite products business we will gain through the acquisition of CSP’s complementary technical expertise in thermoset composites and GFRP know-how will trigger further development of our integrated high-performance materials business, one of our key strategic fields.”

He continues, “Utilizing such synergy effects, and as outlined in our 2014 Transformation and Growth Strategies in Revised Medium-Term Management Plan, Teijin aims to provide consistent upstream-to-downstream solutions and realize one of the company’s growth concepts, which is high-performance materials technologies that create new value. The Teijin Group will continue to evolve, aiming to become a company that supports future society leveraging our core strengths in integrated high-performance materials and healthcare.”

Among Teijin’s priorities in the field of high-performance fibers is developing composite applications for mass-produced automotive components. The company says it is focused on establishing a platform for business development in automotive composite products, aiming to provide a wider range of solutions for automakers.

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Source: Recycling Today
Teijin to purchase Continental Structural Plastics
<![CDATA[Tokyo-based Teijin Ltd. has said it has agreed to acquire Auburn Hills, Michigan-based Continental Structural Plastics Holdings Corp. (CSP), a leading automotive composite supplier in North America, for $825 million. Through the acquisition of CSP, which will become a wholly owned subsidiary, Teijin says it intends to establish the foundations of an automotive composite products business in North America and to accelerate its expansion as a tier 1 supplier to the global automotive market. Teijin Holdings USA Inc., the Teijin Group’s holding company in the U.S., will purchase the shares of CSP. The acquisition is scheduled to be completed in December 2016 after customary closing conditions, including regulatory approval, have been satisfied, Teijin says. CSP is a manufacturer of thermoset composites for the automotive industry and the world’s largest sheet molding compound (SMC) manufacturer for automakers. Since it was established in 1969, CSP has provided leading-edge technologies in lightweight materials and composite solutions such as glass fiber reinforced plastic (GFRP) for the automotive industry, Teijin says. CSP provides full-service engineering support and holds more than 50 patents covering materials development and manufacturing processes in composite materials formulation and design. The Class A surfaces produced by CSP’s SMC technology have been…