Swiss high-performance plastics supplier Gurit Holding AG has sold its PVC operation in China in a bid to shift its focus to core materials manufacturing in the Asia Pacific region.
The company announced Aug. 3 that it had reached an agreement with Qingdao Zhengyu Sunshine Industrial Co. Ltd. to sell Gurit's PVC production company in Qingdao for an undisclosed sales price.
Gurit declined to comment on the size of the operation or its production capacity.
Gurit, however, confirmed that the unit was its only PVC production facility globally.
The Wattwil, Switzerland-based company said it will maintain a distribution agreement for third party PVC.
With the divestment, Gurit said it will increase its focus on core materials manufacturing for the region, including the production of SAN (styrene acrylonitrile) and PET at its existing production facility in Tianjin, China.
But according to company spokeswoman Tanja Moehler, Gurit currently has no plans to expand the production facility in Tianjin.
Gurit expects the transaction to close in October, subject to regulatory approvals.
The agreement includes Gurit's Qingdao operations, staff, PVC operating assets and product intellectual property.
According to Gurit, Qingdao Zhengyu Sunshine Industrial Co. has expressed “a strong desire” to continue to supply to Gurit's existing customers, and to grow the business further.