29 October 2010 10:08 [Source: ICIS news]
DUSSELDORF (ICIS)--Korean polymer additive major Songwon Industrial has made two strategic moves to strengthen its positions in China and India, the company said on Friday.
Jongho Park, chairman of the board, said his firm had “finalised a 30% stake with the option to increase to 50%” in Tangshan Baiful Chemical of Tianjin, China.
Tangshan makes secondary thioester antioxidants. The deal was signed at a press conference at the K 2010 – the international trade fair for the plastics and rubber industry in ?xml:namespace>
The company said the new joint venture, called Songwon Baifu, would become operational in the first quarter of 2011, subject to legal approvals.
Songwon Baifu will sell thioesters directly to the Chinese market and use Songwon’s global network for sales outside the country. It will have a capacity of 6,000 tonnes/year.
Away from the show, Songwon and HPL India also signed a letter of intent to form a joint venture - Songwon HPL Additives.
HPL will transfer all of its business and assets related to polymer stabilisers to a new company that will be owned 40% by HPL and 60% by Songwon, the company said.
This was expected to be operational by the first quarter of 2011.
Speaking on the sidelines of the meeting, Park said the new ventures would help Songwon meet the growing needs for antioxidants and ultraviolet protection in the rapidly expanding polymer markets of the Middle East and China.
He said Songwon had paid around $20m (€14.4m) in total on the two deals.
($1 = €0.72)
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