Car parts supplier Daiichi Kasei Co (IKKA) has announced that it is acquiring Japan-based tier-2 automotive supplier Sol-Plus and its subsidiaries in Japan and Thailand with cash and stock swaps. The acquisition will complement IKKA's presence in the global EV supply chain.
The deal is worth a total of NT$300 million (US$10 million). IKKA will fully own Sol-plus.
IKKA merged with Taiwan's Abico Group around 2015 and was the first Japanese firm listed in Taiwan's Stock Exchange.
IKKA currently supplies lightweight EV components and ADAS solutions to tier-1 automotive suppliers in Japan such as Sumitomo and Aisin. The products end up going to Toyota and other major Japanese carmakers, industry sources said.
Automotive business accounts for over 60% of IKKA's total revenue.
Sol-plus supplies Sony and Denso-ten with plastic A/V components for both cars and electronics, the sources said. The company has production facilities in Japan and Thailand. Acquiring Sol-plus and its Thailand facility serves IKKA's purpose really well as Japanese carmakers hold a 90% market share of Southeast Asia's car market with production concentrated in Thailand.
With IKKA, Sol-plus is expected to expand production of lightweight components and electronics for cars.
IKKA is meanwhile planning to set up a new production plant in Nagoya, Japan.