Teijin to acquire Continental Structural Plastics
In a bid to open up its North American sales channels for automotive composite products, Japan’s Teijin Ltd. is acquiring U.S. composites specialist Continental Structural Plastics (CPS) for US$825 million.
Headquartered in Auburn Hills, Mich., CPS has 14 facilities in the U.S., Mexico, France and China and approximately 3,200 employees. The company will become a wholly owned subsidiary of Teijin.
“Through this transaction, Teijin aims to become an automotive solution provider by expanding its offerings beyond carbon fibre and glass fibre materials, in collaboration with other materials manufacturers,” Teijin said in a statement. “[We] intend to expand our 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 automotive composite products business of the Teijin Group is targeting annual sales of US$2.0 billion by 2030, the statement continued.
Founded in 1969, CSP supplies lightweight composite materials and molded parts for automotive and other industries, with sales of more than US$634 million reported last year.