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Ikka to acquire Sol-plus to supply EV plastic components

Ninelu Tu, Taipei; Yusin Hu, DIGITIMES Asia 0

Credit: DIGITIMES

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.

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