Acquisition in China increases emerging market presence and strengthens Polymer Additives business
Croda International Plc ("Croda" or "the Group") announces that it has received Chinese regulatory approval to acquire a 65% equity interest in Sichuan Sipo Chemical Co. Ltd ("Sipo"), a non-listed natural speciality chemicals manufacturer based in Mianyang City, Sichuan Province, China. Completion of the transaction is subject to customary closing conditions which are expected to be fulfilled within the next few weeks.
Sipo was established in 1993 and has approximately 300 employees. Sipo makes speciality derivatives from natural raw materials and its products include primary amides, novel fatty acids and speciality esters. A state of the art, well invested production facility, custom built in 2011, will provide additional capacity from the outset and increase Croda’s proximity to customers in the region, strengthening its existing operations across China and the Group’s overall s global leadership in fatty acid amides (currently sold under the Crodamide
TM brand) and add new technology that will enable the Group to expand its portfolio across a number of its core markets.
Croda’s initial focus is to grow sales into the Polymer Additives and Lubricants sectors, with further opportunities in new markets expected to follow in due course.
Steve Foots, Chief Executive of Croda, commented:
"This is a significant step forward in our strategy to increase Croda’s presence in fast growing and emerging markets. Sipo’s manufacturing capabilities together with our marketing expertise and sales force infrastructure are an exciting combination. We will have a stronger platform in niche markets and renewable technologies which will allow us to develop our customer base and drive sales growth in Asia. Our broader footprint in China will also enable us to be more responsive to customer needs in this important region."
*purchase consideration of RMB361.6m at an estimated exchange rate of RMB9.45/£.
Founded in 1925 Croda has developed its position as a leading speciality chemical company producing an unrivalled range of naturally derived products for industry. From personal care to polymer additives, home care to health care, lubricants to crop care, Croda technologies will be at the heart of the finished products.
Croda Polymer Additives is a global business offering speciality additives into a wide range of polymer applications.
Croda Polymer Additives provide the following effects: anti-fog, anti-static, mold release, pigment dispersion, slip & anti-block, torque release, UV-absorption, & speciality plasticisers. Croda’s brands for these products are: Atmer, Crodamide, IncroMax, Incroslip, IncroMold, Solasorb, & Priplast
For more information about Croda Polymer Additives products and services contact us and find out how we can help you.
Company contact details:
Tel: +44 1405 860551
Croda Europe, Cowick Hall, Snaith, Goole, E Yorkshire, DN14 9AA, UK