COSELEY, England — December 14, 2018 — Mitsubishi Corp. (MC) has entered into an agreement to acquire 25 percent of shares in ELG Carbon Fibre Ltd. (ECF) from ELG Carbon Fibre International GmbH (ECFI), a subsidiary of ELG Haniel GmbH (ELG) in Germany. The shareholders of ECF will become ECFI and MC. The agreement is subject to regulatory approval and other closing conditions.
ECF’s is engaged in reprocessing surplus carbon fiber reinforced plastic (CFRP) materials from manufacturing operations and end of life parts to produce and supply competitive, high-quality carbon fiber products to the market. Through its own technology and expertise, ECF is the first company in the world to have established stable commercial production of reprocessed carbon fiber supplying to markets such as the automotive and electronics industries.
Under the agreement, MC will promote the sales and marketing of ECF products through the company’s channels already engaged in the business of plastic resin sales. By uniting ECF’s advanced technology and proficiency in the metals reprocessing industry and Mitsubishi Corporation’s global network and broad interface with different industries, the companies aim to enhance the global business development and reliable supply of reprocessed carbon fiber by ECF.
As is the case throughout the global automotive industry, Japanese OEM’s are seeking lightweight advanced material solutions to reduce emissions from internal combustion engines and increase cruising distance of electrified vehicles. Whilst Japan is a global leader in carbon fiber technology, producing almost 70 percent of the world’s supply, recycling technologies have not developed at the same pace and MC’s partnership with ECF addresses this important barrier to mass adoption in industries where sustainability and environmental impact are important.
Frazer Barnes, managing director of ELG Carbon Fibre, commented: “Both ECF and Mitsubishi Corporation place the highest value on quality products and service excellence. Together we will continue to meet the expectations of our customers and stakeholders and grow our business to generate economic and environmental value. This agreement will also provide resources to support our expansion, whilst strengthening ECF’s access to key transportation markets within Asia and North America”.
Mitsubishi Corp. commented: “Through the acquisition of shares in ECF, MC will be contributing to expanding the stable supply of reprocessed carbon fiber while at the same time continuing to contribute to the sustainable development of industry and the realization of a low-carbon society”.
ELG was advised by the London office of MCF Corporate Finance throughout the transaction.
Posted December 14, 2018
Source: Mitsubishi Corp.