Sector News

Categories

Borderless Insights

Image
The Skills-Forward Revolution:   Stretching the Boundaries of Professional Flexibility
Image
Sustainability: Business Leaders Must Secure the Long-Term Strategy Despite Short-Term Pressures
Image
Negotiating Terms with a New Employer

Toray in expanded $8.6 billion carbon fiber deal with Boeing

November 17, 2014
Energy & Chemical Value Chain
(Reuters) – Japan’s Toray Industries (3402.T) said it will be the sole supplier of carbon fiber for Boeing Co’s (BA.N) 777X passenger jet in addition to the 787 Dreamliner and expects orders to exceed $8.6 billion for both planes.
 
The new supply contract, which will extend Toray’s current one with Boeing for more than 10 years, sent shares in the Japanese company surging 4 percent to a seven-year high.
 
The contract will help cement the key role Japanese companies already play in Boeing’s commercial aircraft business. Boeing estimates that around 22,000 engineers in Japan, or 40 percent of the nation’s aerospace workforce, already work on its jets.
 
Boeing has already said that Japanese companies, including Mitsubishi Heavy Industries (7011.T) and Kawasaki Heavy Industries (7012.T), will build one-fifth of the 777X.
 
Toray is spending 100 billion yen ($865 million) on a carbon fiber plant in South Carolina. It said on Monday that it expects 60 billion yen of that investment to be completed in the next three years.
 
After difficulties managing its extended 787 global supply chain, which caused delays in the program, Boeing decided to take a more conventional approach to building the 777X. The plane will have a metal fuselage, unlike the all-carbon-fiber Dreamliner.
 
The first 777X is due to be delivered in 2020 and the plane has so far garnered some 300 orders and commitments. It is expected to be 12 percent more fuel efficient than the current 777, which was introduced in 1995 and has become one of Boeing’s most popular and reliable wide-body planes.
 
Toray’s shares ended at 842.1 yen. At one point, the stock rose as high as 857.4 yen, the highest level since January 2008. ($1 = 115.7 Japanese yen)
 
By Tim Kelly (Editing by Edwina Gibbs, Miral Fahmy and Muralikumar Anantharaman)

comments closed

Related News

July 21, 2024

PepsiCo and Yara partner to decarbonise European crop production

Energy & Chemical Value Chain

PepsiCo Europe and crop nutrition company Yara have announced a long-term partnership aimed at providing European farmers with low-carbon crop nutrition solutions to help decarbonise the food value chain. Under the agreement, Yara will supply PepsiCo with up to 165,000 tons of fertiliser per year by 2030, covering around 25% of the food and beverage giant’s crop fertiliser needs across Europe.

Read more
July 21, 2024

BASF sells Flocculants business for mining applications to Solenis

Energy & Chemical Value Chain

BASF has signed an agreement to sell its flocculants business for mining applications to Solenis, a specialty chemicals manufacturer. The divestment of the flocculants business to Solenis is part of BASF’s ongoing portfolio optimisation with the aim of focusing on strategic core areas.

Read more
July 21, 2024

ADAMA announces Gaël Hili as President and CEO replacing Steve Hawkins

Energy & Chemical Value Chain

ADAMA Ltd. a leading crop protection company, announced that its board of directors has appointed Gaël Hili as its President and Chief Executive Officer, effective October 1, 2024. Hili will join the Syngenta Group Leadership Team and will be based in Tel Aviv.

Read more
More news

How can we help you?

We're easy to reach