Zoltek Buys Cydsa Plant

Zoltek Companies, the US carbon fiber producer, is paying $100m to buy and revamp the Guadalajara-based Crysel acrylic fiber manufacturing assets of Mexico’s Cydsa. Zoltek plans to retool and modify the facility to supply its US operations with low-cost precursor, the principal raw material used in manufacturing carbon fibers. “Zoltek expects the facility will serve as a site for additional carbon fiber production lines supporting Zoltek’s strategic goal of achieving $500m in annual sales of its high-performance commercial grade carbon fibers by fiscal year 2011,” says the acquiror. Zoltek is using a portion of the proceeds of an August secondary common stock offering, along with cash from operations, to fund the investment. It expects precursor production to begin by the end of fiscal 2008.