As part of the restructuring last year, Wanhua provided BorsodChem with new funds of EUR 140 million, which the company currently uses to complete the construction of the new TDI-2 plant and the new nitric acid plant. The long-term development of BorsodChem is now secured by Wanhua, which is financially backed by a syndicate led by the Bank of China.
"The integration of BorsodChem into the Wanhua Group creates the third largest isocyanate producer in the world by turning both companies from two regional players into one global company. I am convinced of the future benefits of our partnership sharing industry know-how and driving genuine synergies. - Jason Ding, Chief Executive Officer of Wanhua Industrial Group says. "Wanhua will leverage BorsodChem on its path towards globalization. Within the Wanhua Group, BorsodChem will be responsible for Wanhua's European operation. We aim to expand BorsodChem and make it the most competitive isocyanate producer in Europe. - adds Mr Ding.
"Wanhua has acquired a successfully re-engineered company with efficient production technologies and committed employees. The strategic cooperation with Wanhua will make BorsodChem an even stronger partner to the European customer base of the Group. In addition, it creates an access for BorsodChem to the Asian markets. With these excellent future perspectives BorsodChem will remain one of the largest employers in Hungary. - says Wolfgang Büchele, Chairman and CEO of BorsodChem.
Funds advised by Permira, Permira and VCP as former majority shareholders are glad to have concluded this transaction with Wanhua, while VCP continues to support Wanhua as a partner.
"By developing a world-class management team with crisis and restructuring experience and implementing a successful re-engineering programme, Permira has achieved that now BorsodChem is a lot stronger and much more competitive than four years ago. We are convinced that the new owner will continue along the growth strategy that Permira and VCP initiated." - says Christian Neuss, Partner at Permira.
"This transaction is highly significant for Central Europe and will pave the way for further investments by Chinese companies in the region. Having been invested in and committed to BorsodChem for more than a decade, we would be pleased if we could continue to be involved in the company under Wanhua's stewardship - says Heinrich Pecina, Senior Partner of VCP.