05 July 2013 14:36 [Source: ICIS news]
LONDON (ICIS)--DIC has agreed to buy out partner Hitachi Chemical from the two firms’ unsaturated polyester resins and vinyl ester resins joint venture, DH Material, the Japan-based chemicals producer said on Friday.
Effective 1 October, DH Material will become a wholly-owned subsidiary of DIC, it said without disclosing financial terms.
The move comes amid a declining Japanese market for unsaturated polyester resins and vinyl ester resins, DIC said. That market has shrunk since the collapse of Lehman Brothers in 2008, it added.
"[The shrinking Japanese market], combined with rising prices for key petrochemical raw materials, has contributed to an increasingly harsh business environment in recent years," it said.
However, DIC expects that overseas demand for unsaturated polyester resins and vinyl ester resins will increase, particularly in China and southeast Asia, it said.
DIC and Hitachi Chemical established DH Material in 2005 as an equal joint venture. DH Material has a staff of about 120 people.
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