Asahi Kasei to buy out DuPont in Chinese polyacetal joint venture

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 10, 2013 12:19 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations Asahi Kasei Plastics North America Inc., DuPont Co.

Japan’s Asahi Kasei Group and DuPont Co. plan to part ways in their 9-year-old joint venture making polyacetal copolymer resin in China, with the companies announcing June 10 that Asahi Kasei will buy DuPont’s 50 percent share of the venture.

Terms were not disclosed and both companies said the ownership transfer of the facility, in Zhangjiagang, Jiangsu province, needs approval from the Chinese government.

Tokyo-based Asahi Kasei said the move would reinforce its position as the world’s only maker of both copolymer and homopolymer polyacetal, and allow it to expand its business in Asia.

Wilmington, Del.-based DuPont said the decision was part of a strategy to focus on the homopolymer acetal market.

The facility, called Asahi-DuPont POM (Zhangjiagang) Co. Ltd., has a production capacity of 20,000 metric tons per year, with a capital investment of $32 million (196.2 million Chinese yuan).

Asahi Kasei suggested that having full ownership would give it advantages in offering a wider range of differentiated polyacetal products.

“Polyacetal has a distinctive market because it cannot be easily replaced by other materials,” Asahi Kasei said. “In China and other regions of Asia, demand growth for polyacetal is forecasted in automotive applications.”

DuPont said in a separate statement that it would keep supplying the Chinese market with its Delrin-brand acetal homopolymer from its facility in Shenzhen, Guangdong province, and other locations. It said it would “continue to strengthen its supply chain capabilities to further increase the volumes of Delrin sourced locally within China.”

It said polyacetal homopolymers are typically used in high-performance automotive, industrial and consumer product applications, including safety systems and motors.

The Zhangjiagang operation began making acetal resins in 2004.

The companies did not say when the ownership change would take effect. Asahi Kasei said the timing depends on Chinese government approvals.

The Japanese firm said the Zhangjiagang factory would become part of its performance plastics business.


Comments

Asahi Kasei to buy out DuPont in Chinese polyacetal joint venture

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 10, 2013 12:19 pm ET

Post Your Comments


Back to story


More stories

Image

Minnesota receives grant to help develop new bioplastics

September 17, 2014 4:08 pm ET

The University of Minnesota has received a $20 million grant to fund the development of new types of bioplastics.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Image

China's Polymax Elastomer launches U.S. production in Illinois

September 17, 2014 3:35 pm ET

Chinese materials maker Polymax Elastomer Technology Co. Ltd. has opened a North American production site and headquarters in Waukegan, Ill.    More

Image

PolyOne helps nonprofit get water purification to more places in need

September 17, 2014 1:59 pm ET

Resin giant PolyOne Corp. is teaming up with WaterStep, a non-profit water purification agency, to help the group assist a greater number of disaster ...    More

Image

ACI expanding in South Carolina

September 17, 2014 12:56 pm ET

Reprocessor and recycler ACI Plastics Inc. is expanding in South Carolina.    More

Market Reports

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events