China's Kingfa, India's Hydro discuss tie-up

By Satnam Singh
Correspondent

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 22, 2013 1:32 pm ET
Updated: May 23, 2013 1:40 pm ET

Related to this story

Topics Materials, Materials Suppliers, CHINAPLAS

GUANGZHOU, CHINA — Chinese compounder Kingfa Sci. & Tech. Co. Ltd. is in advanced negotiations to make an investment in Indian compounder Hydro S&S Industries Ltd., in what would be its first production outside China, executives from both companies said May 22.

In an interview at the Chinaplas trade fair in Guangzhou, a company manager at Guangzhou-based Kingfa declined to disclose details of any potential investment but suggested the two firms are in serious talks.

An article on the Indian financial news website dealcurry.com said Kingfa plans to buy 66.5 percent of Hydro for about 100 crore rupees ($18.0 million).

“Right now I can only tell you we are still negotiating,” said the manager, who spoke on condition of anonymity but was put forward by the company for the interview. “I cannot tell you the details. … We expect to sign it in a few months.”

Both companies are publicly listed on stock exchanges in their home countries.

An executive with Chennai-based Hydro said they hoped to finish the talks in six weeks.

Finance Director S. Subramanium said Hydro is interested in access to the broad materials portfolio of Kingfa, which is China’s largest compounder and one of the world’s largest, while Kingfa is interested in expanding in India’s automobile market.

Hydro employs 192 and has capacity of 29,000 metric tons per year at three factories in India, where it compounds polypropylene, thermoplastic elastomers and glass-fiber materials for auto makers, including Hyundai Motors, Suzuki and India’s Tata Group.

The Kingfa manager said the company established an internal group one year ago to focus on the Indian market, and while they see great potential, the business was stunted by customs and logistics challenges shipping from China.

Kingfa recently announced its net profit exceeded 200 million yuan in the first quarter of 2013, citing automotive as the fastest growing engine.

The company started a 800,000-ton expansion project for automotive compounds in 2012. In the same year, the company managed to boost its auto-related sales by 25 percent, while the Chinese auto market recorded a low single-digit growth rate.

According to Chinese media reports, Kingfa Chairman Yuan Zhimin said he expects the company to reach $10 billion in sales by 2015.

Plastics News China correspondent Isaac Li contributed to this report.


Comments

China's Kingfa, India's Hydro discuss tie-up

By Satnam Singh
Correspondent

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 22, 2013 1:32 pm ET
Updated: May 23, 2013 1:40 pm ET

Post Your Comments


Back to story


More stories

Image

Celanese buys conductive polymer supplier

October 21, 2014 4:31 pm ET

Materials firm Celanese Corp. has acquired most of the assets of conductive polymers maker Cool Polymers Inc. for an undisclosed price.    More

Image

BASF targets coffee and automotive connoisseurs with new resin grades

October 21, 2014 2:07 pm ET

BASF SE is using polybutylene terephthalate (PBT), which is normally used to manufacture high-end electronics, in a food consumer packaging product.    More

Materials firm realigns business divisions

October 20, 2014 1:23 pm ET

Trinseo S.A., formerly known as Styron L.L.C., is realigning its business divisions, creating two new business groups — Performance Materials...    More

Image

Corbion Purac collaboration taking bioplastics into even more uses

October 17, 2014 6:00 am ET

Corbion Purac NV's collaboration with Taiwan-headquartered compounder Supla Co. Ltd. and Taiwan electronics producer Kuender & Co. is paying...    More

Image

Momentive gearing up for some timely LSR sales

October 17, 2014 10:58 am ET

Momentive Performance Materials Inc. has plenty of time for customers at Fakuma — thanks to colorful new watchbands made with the firm's fiber-r...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events