SINGAPORE (CNI)--Japan’s speciality chemicals producer Sanyo Chemical is to buy out Hercules’ 50% stake in their US toner resin joint venture, Hercules-Sanyo Inc, and terminate the accord by the end of this month.
Sanyo’s spokesman told CNI Wednesday: "The company needs more control of its American operations. Thus, the decision to terminate the joint venture.
He said Hercules’ stake in the joint venture, which Sanyo intends to purchase through its American subsidiary Sanam Corp, is worth Yen1.1bn ($9.0m/Euro10.4m).
"After the transaction is completed, Sanam will own 50% of the firm, Sanyo will hold 45% and a US unit of Tomen Corp will have the remaining 5%."
Established in 1992, Hercules-Sanyo initially supplied toner resin products only to Xerox Corp of the US. It expanded supply to more firms, including Japanese copier makers, and ended December 2000 with Yen2bn in sales.
Sanyo now aims to aggressively pursue research and development (R&D) of more promising resin products for use in copiers and printers.