Expansion to Carbon Fiber Biz
LG Hausys has acquired a 50.1 percent share of c2i (Composite Innovation International), an automobile parts company based in Slovakia. The company held a meeting of its board of directors on February 17 and approved the acquisition of the stakes in c2i, which specializes in carbon-fiber components for automobiles.
Accordingly, LG Hausys will secure more than half of the total shares of c2i when the two companies will seal the contract within this month and complete the transaction by March.
Established in 2005, c2i boasts world-leading technology in the field of carbon fiber, which is a lightweighting material that can improve the fuel efficiency of vehicles. The Slovakian company marked a 45 percent increase in revenue last year at 30 billion won (US$26.09 million) from the previous year, growing rapidly with an average annual growth rate of 64 percent for the last five years.
LG Hausys expects to expand its presence in the lightweight auto parts business in the future when combining its light-weight materials – long fiber thermoplastics (LFT) and continuous fiber thermoplastics (CFT) – and c2i’s carbon-fiber composite materials.
LG Hausys has been supplying to automobile manufacturers with auto parts produced at its plant in Ulsan such as the undercover, seat back frame and bumper beams using its LFT and CFT materials that can reduce the weight by up to 30 percent compared to steel.
In particular, c2i also supplies its components to BMW, Porche and Jaguar Land Rover, securing leading automakers and aerospace companies in Europe as its partner companies. Therefore, LG Hausys’ acquisition is expected to serve as a bridgehead to expand its light-weight materials business in Europe in the future.