Perstorp, Sweden - Speciality chemicals company Perstorp has acquired a further business in China, in Shandong Province, which includes a production plant for Neo (Neopentyl glycol).
The takeover took place at the end of last year. The business acquired is expected to have sales for 2008 of SEK 300 million ($47 million), said Perstorp, in an 8 Jan statement.
The Swedish company said that the deal "consolidates Perstorp's leading position in polyols," and is a natural development of its investment last year in China.
Perstorp's existing joint-venture company, Shandong Fufeng Perstorp Chemical Co Ltd, signed the agreement to buy the Neo manufacturing base of Chinese polyol manufacturer Zibo Linzi Yongliu Chemical Industry Stock Co Ltd.
Yongliu is China's second largest manufacturer of Neo polyol and the manufacturing plant, with 20 kilotonnes annual capacity, is located in the Linzi district of Zibo City, where Perstorp already has a production facility for TMP (trimethylolpropane). The acquired business has around 150 employees and has been in operation since the late 1990s.
"The acquisition is a natural second step for us to rapidly expand our business in China. Perstorp has sold products in China for about 20 years, and it's important for us to expand and further develop local production so we can provide our customers with top-quality service," commented Bo Dankis, president and ceo of Perstorp, in the company statement.
Perstorp said it is planning a few minor environmentally-related investments at the Neo facility.
Neo is a polyol mainly used in manufacturing eco-friendly paints and coating systems, mainly powder coatings. according to Perstorp.
The Swedish group acquired 51 percent of the 15 kilotonnes-per-annum capacity TMP plant in Zibo City in January 2007, to be able to meet growing Chinese demand for TMP in the ever-expanding domestic polyurethanes and coatings businesses.