M.A. Hanna Co. is raising its profile in Middle East and Far East markets by taking majority interests in two firms. Hanna agreed to acquire 87 percent of Tekno Polimer Group, an Istanbul, Turkey-based compounder that had sales of more than $11.5 million last year. Hanna said it also bought a 75 percent stake in Star Color Co. of Samut Prakan, Thailand.
Hanna expects to finalize the Tekno Polimer deal by the second quarter, spokeswoman Sue Englehart said in a telephone interview from the compounding giant's head office in Cleveland. Hanna has an option to acquire the rest of Tekno Polimer within five years. Tekno Polimer was founded in 1985 and employs about 100.
Tekno Polimer compounds nylon, polyolefins and polyester for appliance, electrical and automotive markets. Turkey's plastics market is growing 15 percent a year as the country becomes more integrated with the European Commission market. Original equipment manufacturers have been locating plants in Turkey and the country has benefited from financial controls to cut inflation.
"[Tekno Polimer] holds a leading market position and the business is well-managed," Garth Henry, Hanna's executive vice president for international operations, said in a news release.
It will provide a base from which Hanna can export to southeast Europe and Saudi Arabia and provide opportunities in former Soviet states and North Africa, he said.
Englehart said Hanna has not served Turkey directly, but has worked with Tekno Polimer in the region. Hanna runs 15 color and compounding plants in Europe.
Hanna took a majority stake in Star Color in December. Star Color makes color and additive concentrates for markets in Thailand. It employs about 180 and had 1999 sales of about $10 million. Hanna has an option to buy the rest of Star Color after four years. The operation complements a Hanna compounding plant in Singapore and two operations in China, one making concentrates, and the other, compounds.
Hanna has annual sales of about $2.3 billion.