ULSAN, SOUTH KOREA (Dec. 13, 1:15 p.m. ET) — Korean polymer additives maker Songwon Industrial Group announced Dec. 13 it has acquired German company Additives Technology Greiz, to expand its offerings in the ‘'one pack systems'' market.
Ulsan-based Songwon said the acquisition of 5-year-old ATG, based in Kerpen, Germany, will let it quickly scale up its own offerings in OPS products, which combine several additives into an integrated, dust free pellet for compounders and polymer producers.
Terms were not disclosed.
‘'We promised our customers that we would meet their demands and we will now be able to deliver Songnox OPS in significant volumes immediately with the ability to expand the annual capacity up to 12,000 tons in the future,'' said Jongho Park, chairman and chief executive officer of Songwon.
An ATG official said the company needed additional resources to expand, and said in a statement distributed by Songwon that the Korean company has financial strength, a global footprint and, ‘'most importantly… back integration in the production of antioxidants, a key component for OPS.''
‘'ATG has progressed very well since its foundation five years ago delivering a double digit annual growth rate and constant expansion of its market share,'' said Peter Schmitt-Freise, one of the three previous shareholders of ATG. ‘'The business still has very significant growth potential, however, we recognized that to pursue this opportunity we would need additional resources to move from a local to a global player.''
Songwon called ATG one of Europe's largest makers of OPS products for the polymer industry.