Japan’s Toray Industries, the world’s leading producer of carbon-fiber composites, is to buy TenCate Advanced Composites (TCAC) for €930 million as it aims to boost its business.

The acquisition is part of the Tokyo-headquartered group’s strategy to speed up its technology development in line with rising demand for the fiber in aircraft applications.

“Demand for medium- and small-sized, single-aisle aircraft is growing significantly and the development of the next-generation aircraft targeting such demand is expected to intensify," Toray said, adding that the use of thermoplastic prepreg will further increase as the material improves molding efficiency, thus reducing costs.

TenCate is a Dutch prepreg manufacturer with its main bases in Europe and the US. Jan Albers, CEO of TenCate, commented: “The aerospace industry is entering a new growth phase, which requires large investments for continued sustainable growth in this dynamic market. With Toray we have found the right partner to expand TCAC’s leading role in advanced composites.”

Toray added that the deal will also enable it to further expand the business for industrial use applications, including automotive in the medium-to-long term.

The acquisition is expected to close in the second half of 2018, subject to regulatory approval as well as the completion of talks with TenCate’s works council, as required under Dutch law.

Toray has been strengthening its carbon fiber business since 2013, when it paid $584 million to acquire US rival Zoltek.