Mitsubishi Plastics, Inc. (Tokyo) and Mitsubishi Rayon Co., Ltd. (Tokyo) plan to integrate their carbon fiber businesses that are, respectively, pitch-based and PAN-based. The merger will take place on April 1, 2015 with the establishment of a new entity by Mitsubishi Rayon. The combined entity will have revenue estimated at over $500 million and is targeting sales of over $850 million by 2018.
|Pitch-based carbon fiber market could expand through merger of Mitsubishi Group companies.|
Mitsubishi Plastics commands a dominant global position in the pitch-based carbon fiber business, with an approximately 71% share of worldwide capacity according to the company, although the global market for these fibers is only around 1% of that for PAN-based fibers. Pitch-based fibers are employed in applications such as industrial machinery, bridge reinforcement, and satellites. PAN-based fibers, on the other hand, find use in aircraft, automobiles, and wind turbine blades.