TRYIY Toray Industries Inc (PK)

TOKYO--Toray Industries Inc. (3402.TO), the global market leader in carbon fiber, said Friday it has agreed to buy smaller rival Zoltek Companies Inc. (ZOLT) in a deal valued at $584 million.

The Japanese synthetic fiber maker said it will use a special purpose company in the U.S. to buy the entire stake in St. Louis-based Zoltek for $16.75 per share. A Toray spokesman in Tokyo said the transaction will be completed as soon as possible.

Carbon-fiber reinforced plastic is lighter and stronger than sheet steel and aluminium. It is a key component in fuel-efficient jetliners flying long-haul routes, and is used in industrial applications such as the blades of electricity-generating windmills.

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

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