Teijin agrees to sell composites business subsidiary in Japan

Teijin Limited announced that it has agreed to sell its entire stake in GH Craft Co., Ltd. to TIP composite Co., Ltd. Teijin signed the share transfer agreement September 1, 2023.

Teijin acquired GH Craft in July 2008 as part of its downstream strategy. Leveraging its superior technological capabilities, GH Craft has been involved in the design, prototyping, and evaluation of composite materials centered on highly demanding applications for the aerospace, railway, and automotive industries. As one of Teijin’s composites business hubs in Japan, GH Craft earned the trust of customers.

Since acquiring its North American business in 2017, Teijin has been expanding the automotive composites business. However, the business has significantly fallen short of its expected profit levels due to factors such as a deterioration in the business environment due to semiconductor and labor shortages and raw material price rises. In response, Teijin has been concentrating the resources on its base in North America as its key region to implement measures to improve profitability. Under these circumstances, Teijin has decided to sell the GH Craft while considering the company's further growth.

TIP composite manufactures and sells composite materials for a wide range of industries, including aerospace and industrial. TIP composite has already collaborated on selected projects with GH Craft. Now, by obtaining GH Craft's knowledge and technology, TIP composite is expected to grow its business significantly.

About the equity-method subsidiary to be transferred:

GH Craft Co., Ltd.

TIP Composite Co., Ltd.

The share transfer is scheduled for September 7, 2023. The impact of this transaction on Teijin’s consolidated financial results for the fiscal year ending March 31, 2024, is expected to be minor.