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

Castle Harlan buys landscape erosion control firm Tensar

July 30, 2014 3:46 pm ET

Private equity group Castle Harlan inc. has acquired Atlanta-based Tensar Corp., with plans for the geosynthetic products maker and its subsidiaries...    More

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events