Mitsubishi is to acquire a 25% shareholding in UK composite recycling company ELG Carbon Fibre from its German parent, the metals-reprocessing specialist ELG Haniel.
The Japanese industrial conglomerate will purchase the stake through its trading arm Mitsubishi Corporation, which is active across sectors as diverse as chemicals, energy, finance, foods, machinery, metals, and environmental activities.
"By uniting [ELG's] advanced technology and proficiency in the metals reprocessing industry and Mitsubishi Corporation's global network and broad interface with different industries, the companies aim to enhance the global business development and reliable supply of reprocessed carbonfibre," ELG says.
The company, based near Birmingham, has developed a recycling process in partnership with Boeing and disclosed earlier this month a deal under which waste material from the US airframer's production will be routinely reprocessed.
ELG describes itself as "the first company in the world to have established stable commercial production of reprocessed carbonfibre" and says that the material will be used in the automotive and electronics industries.
Noting that carmakers are seeking "lightweight advanced material solutions", ELG adds: "Whilst Japan is a global leader in carbonfibre technology, producing almost 70% of the world's supply, recycling technologies have not developed at the same pace and Mitsubishi Corporation's partnership with [ELG] addresses this important barrier to mass adoption".
ELG managing director Frazer Barnes expects that the agreement will enable the recycler to "generate economic and environmental value [and] also provide resources to support our expansion".
No financial details of the share acquisition have been disclosed. The deal is subject to regulatory approval.