Under the Teijin Group, a core company specializing in fiber product research and development, Furet Co., Ltd. recently planned to spend 125 million euros to acquire J.H. Ziegler, a leading German automotive interior material supplier. Through the acquisition of the German company Ziegler, Teijin Frette Co., Ltd. will further open up the European market, improve its production and sales capabilities in the field of automotive interior materials, and increase the company's influence in the global automotive market, adding value to the enterprise.
German Ziegler company was founded in 1864 and is headquartered in Aachen, Germany. It has global advanced technology in the fields of non-woven seat filling materials and sound insulation composite materials. With the wave of automotive fuel reform, sales of hybrid electric vehicles (HEVs) and all-electric vehicles (EVs) have been rising worldwide, but they have also brought some noise problems. Therefore, for automotive original equipment manufacturers, in order to keep up with demand, the sound insulation performance of automotive interior materials has become increasingly important.
Due to the tremor effect, sound insulation is particularly important in the process of off-road vehicles
According to reports, Germany's Ziegler has five factories around the world. Their technology can meet the strict requirements of automotive original equipment manufacturers in terms of appearance, tactile feedback, and practical use of seat surface materials. Currently, their company supplies breathable materials that prevent wrinkles and maintain the luxurious appearance of leather materials, sound insulation materials, and non-woven materials for indoor thermal insulation in homes. The sales of these materials alone exceeded 69 million euros in one year in 2017.
Through the acquisition of the German company Ziegler, Teijin Frette Co., Ltd. will strengthen its production and sales capabilities in the automotive interior materials field in the European market, thereby increasing its influence in the global automotive market and increasing corporate value in the future. If the entire acquisition process passes regulatory requirements smoothly, the acquisition plan will be completed in August 2018, in the form of cash or newly raised funds.
In order to promote the sales of German Ziegler products and meet the growing demand for low-noise driving environments for electric vehicles, Teijin Furut Co., Ltd. plans to optimize the design and production structure of German Ziegler companies. Teijin Frett Co., Ltd. will combine its own research and development and production advantages in fiber materials, and introduce ultra-fine fiber technology on the basis of Ziegler's products to develop materials with better sound insulation.
Teijin Frett Co., Ltd. will make good use of the manufacturing facilities of Continental Structural Plastics, Teijin Group ’s polymer business in North America and Ziegler ’s inherent sales channels in Germany, to achieve commercial synergy and develop relationships with automotive interiors and Exterior related new business.