Chi Mei, Grand Pacific plan China ABS merger

04 March 2008 10:07  [Source: ICIS news]

SINGAPORE (ICIS News)--Taiwan petrochemicals firms Chi Mei and Grand Pacific have signed a memorandum of merger for their six China-based acrylonitrile-butadiene-styrene (ABS) plants and will start facility inspections in Jiangsu province, a Grand Pacific spokeswoman said on Tuesday.

 

The merger was expected to help the companies gain a more dominant position in the nation’s ABS market in terms of economies of scale, sales volumes and technical expertise, she said.

If successful, the parent companies could expect an annual turnover of more than yuan (CNY) 10bn ($1.4bn) from the 700,000 tonne/year ABS plants, the largest in China, she added.

"If everything goes well, we expect the existing plants to be registered under the name of Zhenjiang Chi Mei Chemical within a month or so,” the spokesperson said.

 

Grand Pacific currently owns three plants with the total production capacity of 250,000 tonnes/year, while Chi Mei has another three plants with a combined output of 450,000 tonnes/year.

 

Zhenjiang Chi Mei Chemical may apply to be listed on the Hong Kong or China stock exchanges.

 

($1 = CNY7.10)

By: Serene Cheong
+65 6780 4359

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