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

Global Plastics Summit puts PE prices in the spotlight

October 1, 2014 3:17 pm ET

Product manufacturers may start to shift away from polyethylene because of high prices, according to two major plastics processors.    More

Image

Nucleation offers solution to shrinkage in HDPE closures

October 1, 2014 1:57 pm ET

For caps producers, nucleation can provide a practical solution to eliminate shrinkage variations in high density polyethylene beverage closures....    More

Image

Dow loses appeal in price fixing case

October 1, 2014 11:10 am ET

The Reuters press agency reports that a federal appeals court in Denver has rejected Dow Chemical Co.'s attempt to overturn a $1.06 billion fine...    More

Image

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Image

LyondellBasell CEO Gallogly to retire

September 30, 2014 3:00 pm ET

James Gallogly, CEO of Houston-based polyolefins producer LyondellBasell Industries NV, on Sept. 29 announced plans to retire in 2015.    More

Market Reports

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 industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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