TAGS: Automotive Thermoplastic Composites
Teijin Limited announced that it has agreed to sell its entire stake in GH Craft Co., Ltd., an equity-method subsidiary of Teijin’s composites business in Japan, to TIP composite Co., Ltd. Teijin signed the share transfer agreement.
Deterioration in the Business Environment due to Certain Factors
Teijin acquired GH Craft in July 2008 as part of its downstream strategy. Leveraging its superior technological capabilities, GH Craft has been involved in the design, prototyping, and evaluation of composite materials centered on highly demanding applications for the aerospace, railway, and automotive industries. As one of Teijin’s composites business hubs in Japan, GH Craft earned the trust of customers.
Since acquiring its North American business in 2017, Teijin has been expanding the automotive composites business. However, the business has significantly fallen short of its expected profit levels due to factors such as a deterioration in the business environment due to semiconductor and labor shortages and raw material price rises. In response, Teijin has been concentrating the resources on its base in North America as its key region to implement measures to improve profitability. Under these circumstances, Teijin has decided to sell GH Craft while considering the company's further growth.
TIP composite manufactures and sells composite materials for a wide range of industries, including aerospace and industrial. TIP composite has already collaborated on selected projects with GH Craft. Now, by obtaining GH Craft's knowledge and technology, TIP composite is expected to grow its business significantly.
Equity-method Subsidiary to be Transferred
- GH Craft Co., Ltd.
| Name |
GH Craft Co., Ltd. |
| Head office location |
733 Itazuma, Gotemba City, Shizuoka Prefecture |
| Name and title of the representative |
Yoichi Suyama, President and Representative Director |
| Description of business |
Design, development, prototyping, production and sales of next-generation lightweight structural products using advanced composite technology |
| Share capital |
JPY 100 million |
| Month of incorporation |
August 1972 |
| Number of employees |
Approximately 70 |
| Shareholding ratio |
Teijin Limited 99.1%, employee shareholders 0.9% |
- TIP Composite Co., Ltd.
| Name |
TIP Composite Co., Ltd. |
| Head office location |
3967-19 Minami Nishihara, Wada, Matsumoto City, Nagano Prefecture |
| Name and title of the representative |
Akira Ninomiya, President & CEO |
| Description of business |
Design, manufacture and sale of fiber reinforced plastic molded products |
| Share capital |
JPY 75 million |
| Month of incorporation |
August 1970 |
| Number of employees |
Approximately 19 |
| Shareholding ratio |
Tomei Industry Co., Ltd. 100% |
The share transfer is scheduled for September 7, 2023. The impact of this transaction on Teijin’s consolidated financial results for the fiscal year ending March 31, 2024, is expected to be minor.
Source: Teijin Limited
