As the Teijin Group's fiber and fiber processing company, Teijin Frontier has agreed to acquire J.H. Ziegler. Ziegler is a major supplier of automotive interior materials in Germany. The purchase price is approximately 125 million euros. Ziegler will become a wholly-owned subsidiary of Teijin Furet.
Sound insulation becomes particularly important in fast-running hybrid and all-electric vehicles
The acquisition of Ziegler will take place through cash and newly raised funds and will be completed in August 2018. All parties have previously confirmed that all regular closing conditions, including regulatory approvals, have been met.
Since its founding in 1864, Ziegler has continuously innovated and advanced technologies in the fields of non-woven filling materials and sound-absorbing composite solutions. With the increase in sales of hybrid and all-electric vehicles worldwide, sound insulation performance is increasingly valued by automotive OEMs, and nonwoven lightweight solutions using PP and PET are beginning to emerge.
Ziegler's technology is reported to meet OEM's stringent requirements in terms of appearance, tactile feedback, and the availability of seat surface materials. Ziegler, headquartered in Achern-Oberachern, Germany, offers advanced non-woven lining structures, including materials with ventilation capabilities that help prevent wrinkles and maintain the luxurious appearance of leather materials. The company also produces sound-absorbing materials and nonwovens for home and thermal insulation. The company has five plants worldwide, three of which are in Germany and two in Hungary and China, and employs about 400 people. For the fiscal year ended December 31, 2017, the company reported sales of 69 million euros.
Through the acquisition of Ziegler, Teijin Furet will increase its production and sales capabilities of automotive interior materials in Europe, thereby expanding its influence in the global automotive market and increasing its corporate value. In order to promote the sales of Ziegler products to meet the growing demand for low-noise electric vehicle driving environments, Teijin Furet plans to optimize the design and production structure of Ziegler. With its R & D and production capabilities of silk and staple fibers, Teijin Furet plans to use its ultra-fine fibers to develop materials with better sound absorption properties. Teijin Furrett will also use Continental Structural Plastics' production and sales facilities to seek commercial synergies. Continental Structural Plastics is the North American hub of Teijin Group's composites business and a sales channel for Ziegler. Its purpose is to develop new businesses related to automotive interiors and exteriors.