Toray, Airbus Sign Big Carbon Fiber Deal

Toray Industries has signed a 15-year carbon-fiber-composite supply agreement with EADS, parent of aircraft maker Airbus. Japan’s leading financial newspaper, Nikkei, estimates the deal to be worth $3.2 billion, but a Toray spokeswoman calls this figure speculative. To date, Toray has supplied carbon fiber only to composite manufacturers that in turn supply Airbus. Toray notes that the agreement improves its potential to supply material for Airbus’ A350 XWB, a medium-sized jet that is expected to make substantial use of composites. Toray, the world’s leading supplier of carbon fiber to the aircraft industry, has seen its business suffer since 2008 because of a slump in demand for new airplanes.