Teijin had acquired GH Craft in July 2008 as an essential component of its downstream strategy. GH Craft has been pivotal in the design, prototyping, and evaluation of composite materials, particularly for the aerospace, railway, and automotive sectors. However, since Teijin's acquisition of its North American business in 2017, the company has been grappling with lower-than-expected profits. The causes include semiconductor and labour shortages, along with rising raw material costs. As a result, Teijin has shifted its primary focus to its North American base, the company said in a media release.
In light of the existing challenges and the need for improving profitability, Teijin made the decision to divest its GH Craft subsidiary. The aim is to reallocate resources to its North American operations, which are now seen as the key growth area for the company.
TIP Composite, the purchaser, is a manufacturer of composite materials used in various industries, including aerospace and industrial sectors. The company has had previous collaborations with GH Craft and aims to leverage the acquired expertise to significantly expand its own business operations.
The share transfer between Teijin and TIP Composite is slated for completion on September 7, 2023. Although the exact financial terms have not been disclosed, the impact on Teijin’s consolidated financial results for the fiscal ending March 31, 2024, is expected to be minor.
Fibre2Fashion News Desk (KD)