The Alphagary unit of global materials firm Orbia Advance Corp. has acquired a majority stake in Shakun Polymers Pvt. Ltd., a compounder based in India.
Shakun makes compounds for wire and cable markets in the Indian subcontinent, the Middle East, Southeast Asia and Africa, officials said in a May 13 news release. They added that the deal "represents an important strategic investment" for Leominster-based Alphagary, which specializes in PVC and TPE compounds.
"With its investment, Alphagary is expanding its product and regional footprints, as Shakun will continue to provide next-generation materials designed to meet the high safety and performance standards in Asia and Africa's markets," officials said.
Shakun's product focus is on halogen-free, flame-retardant compounds and PVC compounds for data and power cables. Officials said Shakun's semi-conductive and cross-linkable compounds expand Alphagary's portfolio and offer a growth platform.
Key members of the Shakun management team will remain with the business. The firm is based in Vadodara and operates four sites in India with total annual compounding capacity of almost 90 million pounds.
Alphagary president Gautam Nivarthy said in the release that Shakun "has rapidly built a significant market position by providing quality materials geared toward meeting customer needs in Asia and Africa."
Mexico City-based Orbia in 2019 changed its name from Mexichem. The firm is a maker of PVC pipe, resins and compounds as well as other specialty chemicals. It has operations in 50 countries and posted sales of $6.4 billion in 2020. In addition to Alphagary, Orbia's product lines include Vestolit PVC resin, Wavin pipe and Dure-Line conduit.
"Even as India faces difficulty with the current pandemic, we are confident in the resilience of the Asia-Pacific and African markets and long-term growth coming from these regions," Orbia CEO Sameer Bharadwaj said in the release.
The Shakun investment "provides us with a local presence, a wider scope for future-focused development and a strong customer base for our products and services that help to advance life around the world," he added.
Alphagary operates eight plants in the U.S., the United Kingdom, Mexico and Colombia. The firm traces its history to Gary Chemical, which was founded in Leominster, Mass., in 1979.