Wesel, Germany - Elantas Electrical Insulation, a division of speciality chemicals group Altana AG, is buying Changzhou Lantian Ruiqi Chemical Co. Ltd's Tris-2-hydroxyethyl Isocyanurate (THEIC) business.
ELantas said it plans to expand capacity for THEIC, used for resin manufacture for coatings, including magnetic wire enamels, with some use in urethane coating resins.
The transaction, expected to be completed in the third quarter of 2012, will allow Elantas to take over production facilities in Changzhou, technology and employees.
No financial details of the purchase were disclosed.
Wesel, Germany-based Elantas will continue the acquired business under the name Elantas Changzhou Ltd and to expand the capacity of the plant by an unspecified amount.
As well as its use to make urethane, unsaturated and saturated polyester, and alkyd resins for coatings, THEIC finds some use in rigid PU foams.
For Elantas, the move means it will be able to produce an important raw material for wire enamels in-house, to offer customers higher quality and more innovative products.
ELantas will also supply existing Lantian customers.
Zhu Bo Fan, chairman Changzhou Lantian Ruiqi Chemical, said in Elantas' announcement: "This transaction enables us to focus more on our other activities and to hand over essential chemical know-how to a long-standing and reliable partner."
Dr Wolfgang Schuett, president of electrical insulation and Elantas GmbH chairman, said: "The new Chinese company fits in very well with the global strategy of Elantas. It integrates well into our production sites in the EU, the NAFTA region, and India, and complements our good position in China."
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