China's largest plastics compounder, Kingfa Sci & Tech Co. Ltd. of Guangzhou, Guangdong province, has disclosed more details about its acquisition of speciality engineering resin maker Dongfang Special Engineering Plastics Co. of Mianyang, Sichuan province.

The deal was first announced to the public last month, as mentioned in my blog on Oct. 7.

This week, the price tag has been revealed: 180 million yuan, about 27 percent more than Dongfang's net asset estimate.

Kingfa said it will better align its existing manufacturing bases in Guangzhou, Shanghai and Mianyang after the acquisition is complete, increase efficiency, and reduce Dongfang's reliance on its current partners' toll compounding services.

Kingfa also mentioned a plan to establish a joint venture to manufacture inorganic non-metal materials, including rare earth, and related equipment. Kingfa will invest 7 million yuan for 70 percent of the JV's share.