Zoltek Makes Deal, Shares Soar (ZOLT, MGA)

Zoltek’s CEO said:

We have long regarded the automotive industry as the largest potential user of low-cost, high-performance carbon fibers, and it is a vital part of our strategy as the largest producer of these fiber[s] to work closely with leading suppliers to the automotive industry of parts and sub-systems.

Magna, with a market cap of more than $11 billion, certainly qualifies as a leading supplier. The two companies did not provide specific details of their agreement.

Zoltek’s shares are up nearly 17% at $11.90 in a 52-week range of $5.60-$15.01.