Dutch Ten Cate Eyes Asia, Wind Energy, Autos
Royal Ten Cate, the Dutch producer of artificial grass and materials used in the defense and aerospace industries, said on Thursday it is on the prowl again for acquisitions and alliances.
Asia is one region ripe for expansion for all of Ten Cate's products: it currently accounts for just 10-15% of Ten Cate's annual sales of about €1 billion ($1.35 billion), but the target is to raise that to 20-30%.
Ten Cate, whose composite materials are used on the wings of the Airbus A380, wants to apply technology used in the aerospace industry to expand in the wind energy, automotive, and oil and gas sectors, said Frank Spaan, investor relations director.
Ten Cate supplies Boeing Co and Airbus, a unit of Europe's EADS; growth has been held back by aircraft production delays, but is now set to accelerate.
"As from the fourth quarter of 2010, and starting this year, it will really take off," Spaan told Reuters, citing fleet renewals and a recovery in air travel.
Ten Cate competes with specialty chemicals and composite materials producers such as U.S.-listed Cytec Industries and Hexcel in supplying composites used in aircraft manufacturing and wants to capitalize on the technology to get into new areas. By buying suppliers or firms with the relevant composites
product range or technology, Ten Cate can generate commercial sales from those sectors in the next two to five years, he said. Spaan declined to name any possible targets or deal size. The firm last month agreed a €450 million syndicated loan.
