07 October 2005
07 October 2005
Quadrant Plastic Composites is to acquire a controlling majority interest (80 percent) in the Japanese Glass Mat Thermoplastics manufacturer, Japan GMT Co.Ltd.
The acquisition will be from its current shareholders, Ube-Nitto Kasei Co., Ltd. (UNK), Idemitsu Kosan Co., Ltd. (IKC) and Nippon Sheet Glass Co., Ltd. (NSG). NSG is to retain a 20% stake in JGC.
At a purchase price of 120 million Yen, Quadrant Plastic Composites (QPC) the Swiss speciality engineering thermoplastics and composites manufacturer, will become a global manufacturer and supplier of thermoplastic composites in the major Japanese industrial market.
JGC employs a workforce of 50 and develops, manufactures and markets semi-finished products based on glass mat thermoplastics (GMT).
The transaction will secure access to Japanese OEMs and tier one suppliers and their transplants in the USA and Europe. Quadrant will also be able to serve the emerging Asian market outside Japan (China, Korea, Taiwan). QPC also expects a more rapid introduction of its other composite materials such as SymaLITE and natural fibre non-wovens Loprefin, Nafcoform and Glascoform in Asia.
Volker Fritz, CEO Quadrant Plastic Composites, said that: “The investment in JGC will benefit all our GMT customers in Japan and worldwide. Our long-standing cooperative relationship has already brought both teams close together, so JGC personnel will be in good hands with us”.
According to Shigeya Oishi, Executive Vice President for Quadrant in Japan and President designate of JGC, “this growth through acquisition is an important move for Quadrant in Japan and the reward for many years of development work by the Quadrant Group in partnership with JGC and its shareholders, whereby special thanks goes to NSG”.
The acquisition of JGC will provide the Quadrant Group with a third manufacturing leg in Japan – alongside its 45% stake in Nippon Polypenco (since 2001) and its 50% interest in Poly Hi Solidur Japan (since 2005) – and thus consolidate its strategic position and its standing in the world's second largest industrialized economy. Quadrant is already strongly positioned in North America and Europe, and its declared aim is also to establish correspondingly strong and durable positions in Asia in the medium term. The markets in these regions are enjoying above-average growth rates.
Prior to its acquisition by QPC, JGC was a joint venture between Japanese groups NSG (previous holding 34%; manufacturer of glass and glass products; net sales of some 2.5 billion US$), IKC (32%; petrochemicals; 21 billion US$) and UNK (34%; engineering plastics, primarily polyamide-based; 130 million US$). The role of the previous shareholders was mainly in supplying raw materials for GMT production (polypropylene from IKC and glass fibres from NSG).
Haydale has been working with National Grid to calculate the benefit case of its Composite Transition Piece (CTP), using a method developed by National Grid and verified by PwC during a previous audit.