Asahi Kasei to buy out DuPont in Chinese polyacetal joint venture

By Steve Toloken
News Editor / International

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
News Editor / International

Published: June 10, 2013 12:19 pm ET

Post Your Comments


Back to story


More stories

Image

Resin prices remain unpredictable

April 27, 2015 12:23 pm ET

Oil prices leveled off a bit in March, but North American commodity resin prices remained as unpredictable as ever.    More

Image

Dow Chemical bullish about prospect for global polyurethane markets

April 27, 2015 11:17 am ET

MAASTRICHT, THE NETHERLANDS — Glenn Wright, president of Dow Chemical Co.’s polyurethanes and formulated systems business, revealed that...    More

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they ha...    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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

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

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events