Leading Chinese compounder Guangzhou Kingfa Sci & Tech Co. Ltd. has officially acquired a special engineering resin maker Mianyang Dongfang Special Engineering Plastics Co.

The deal was priced at less than 300 million yuan. No further details are available.

Kingfa has achieved rapid organic growth in the past three years, increasing sales by more than 30 percent annually. The October 1 acquisition marks the company's new expansion strategies as well as its determination of entering the market of specialized engineering resin.

Dongfang was founded in August 2003 with a registered capital of 60 million yuan. The company is currently the largest producer of anti-corrosion high density polyethylene that is used in buried steel pipelines and claims annual capacity of 32,000 metric tons, according to Kingfa's announcement.

Dongfang's major customers include refiner giants like Petro China, China Petroleum & Chemical Corp (Sinopec) and China National Offshore Oil Corp (CNOOC).

As of the end of August, the Mianyang, Sichuan province-based company realized sales and net profit of 315 million yuan and 20.6 million yuan respectively.

Guangzhou-based Kingfa said it plans to acquire several more companies "with technologies or products that supplement Kingfa's business" in the next few years.