September 26, 2013 / 7:36 PM / 4 years ago

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

Sept 26 (Reuters) - Japan’s Toray Industries Inc will buy U.S-based Zoltek Cos for $600-$700 million to increase its share of the global carbon fibre market to 30 percent, the Nikkei reported.

Toray plans to start producing lower-priced carbon fibre 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 fibre, 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 Nasadaq on Thursday afternoon at $18.35.

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

The deal expected to be announced on Friday.

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