Carbon fiber maker Toray to buy Zoltek for about $600-$700 million: Nikkei

Thu Sep 26, 2013 3:37pm EDT

A man looks at components of Toray Industries' prototype electric vehicle TEEWave AR1 during an exhibition showcasing the company's latest technology in Tokyo September 14, 2011. REUTERS/Yuriko Nakao

A man looks at components of Toray Industries' prototype electric vehicle TEEWave AR1 during an exhibition showcasing the company's latest technology in Tokyo September 14, 2011.

Credit: Reuters/Yuriko Nakao

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(Reuters) - Japan's Toray Industries Inc (3402.T) will buy U.S-based Zoltek Cos ZOLT.O for $600-$700 million to increase its share of the global carbon fiber market to 30 percent, the Nikkei reported.

Toray plans to start producing lower-priced carbon fiber with the deal, the business daily said.

Zoltek's products, used in construction materials and autoparts, are priced at about 60 percent of Toray's high-performance carbon fiber, the paper said.

Zoltek could not be reached for a comment.

Shares of the company, which had a market capitalization of $565 million as of Wednesday's close, were up 12 percent on the Nasdaq on Thursday afternoon at $18.35.

Carbon fiber is lighter than steel, but higher prices have limited its use, the paper said.

The deal expected to be announced on Friday.

($1 = 98.96 Japanese yen)

(Reporting by Mridhula Raghavan in Bangalore; Editing by Joyjeet Das)

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