Japan’s Teijin Frontier has agreed to acquire German automotive interior materials supplier J.H. Ziegler for about €125 million. The acquisition will boost Teijin’s automotive materials production and sales capabilities in Europe.

To drive the sales of Ziegler products that can meet the growing demand for low-noise electric vehicles (EV) driving environments, Teijin Frontier said it plans to optimize Ziegler’s design and production structures.

The Osaka-based company added that it will also seek synergies by leveraging the production and sales facility of Continental Structural Plastics, a North American hub of Teijin’s composite business, and Ziegler’s sales channels in order to develop new businesses related to automotive interiors and exteriors.

According to Teijin, developments such as EV, autonomous cars and car sharing, along with the emergence of tightening environmental regulations, are driving demand for comfortable and low-noise, high-performance automotive interiors.

Ziegler manufactures staple fiber nonwovens for furniture, automotive, medical and industrial applications. It operates five facilities globally – three in Germany and one each in Hungary and China – and employs about 400 staff. It recorded consolidated sales of more than €69 million in the financial year ending Dec. 31, 2017.

The German company will become a wholly owned subsidiary of Teijin Frontier after the transaction’s closure, which is anticipated in August, subject to the usual conditions and regulatory approvals.

Teijin Frontier integrated Teijin’s polyester fibers and products converting activities on Apr. 1, 2017. It said the newly formed Fibers & Products Converting Business Group will strengthen the competitiveness of Teijin’s polyester fibers business and facilitate new development activities.