Teijin to Acquire US Based Continental Structure Plastics

Tokyo: Teijen Limited, a Japan based company, has agreed to acquire US based car composites manufacturer, that is, Continental Structure Plastics Holdings in order to establish their automotive composite products business in North America. Teijen Limited plans to leverage CSP’s well established sales channel in North America automotive market. CSP controls 14 facilities worldwide, out of which, 11 are located in the United States. The company generated sales worth USD634 Million in 2015 and would become a wholly owned subsidiary of Teijin, post the acquisition. Teijin’s U.S based holding company would buy the shares of CSP and the acquisition is scheduled to be completed by December 2016 after regulatory approvals. Moreover, Teijin, the fifth largest producer of carbon fibres in the world plans to establish a carbon fibre facility in United States to provide CSP with respective materials.

TechSci Research depicts that through acquisition of Continental Structure Plastics Holdings, Teijin would expand its product portfolio beyond carbon and glass fibres and improve its presence as an automotive solutions provider. The acquisition will lead to increase in competition in the region which would better serve the demand for engineering plastics.

According to the upcoming report by TechSci Research, “India Engineering Plastics Market Forecast and Opportunities, 2020”, India engineering plastics market is projected to exhibit a CAGR of over 13% during 2015 – 2020. Growth in the market is anticipated on account of increasing application in various industries, wherein engineering plastics are fast emerging as substitutes to traditional engineering materials like wood and metal, owing to their superior physical and mechanical properties. Automotive and electrical & electronics industries are the major consumers of engineering plastics in India, on account of their suitability for manufacturing a variety of auto parts, and lighting and electrical equipment like switchgears, sockets, enclosures, etc. Increasing disposable income, changing consumer lifestyle, and rapid urbanization and industrialization are driving automotive manufacturing in India, thereby propelling the demand for engineering plastics in the country.