Nikkei business daily reported that Teijin Limited will supply carbon fibre composite material to European plane maker Airbus from fiscal 2011.

As per report, synthetic textile maker Teijin has signed a 15 year deal with Airbus parent EADS and will supply the material for Airbus's multiple aircraft models, including the A350XWB midsize passenger plane due to be introduced in 2012.

The composite will be used to make the plane's fuselage, because the composite material is as strong as steel, but weighs only half as much, it is expected to sharply boost the fuel economy of an aircraft.

Teijin will also consider building a new factory in Europe to make it an output base for shipment to Airbus and aims for several tens of billions of yen in sales of carbon fibers and composites for aircraft in a few years, raising the figure to JPY 100 billion in 2025.

Japan's Toray Industries and US firms Hexcel Corporation and Cytec Industries currently monopolize the global market for the composite material and Teijin's entry is expected to intensify competition.

(Sourced from Nikkei)