Wenzhou, Zhejiang – Huafon Spandex, the elastane arm of Huafon Group, plans to fully absorb the group’s PU resin and polyol subsidiary, Zhejiang Huafon New Materials.
Huafon Spandex will pay cash and issue new shares on the Shenzhen Stock Exchange to close the deal.
Trading in Huafon Spandex was suspended when the deal was announced on 25 March. No price of the has been disclosed.
Huafon New Materials has 400kT/year capacity of polyols capacity, and claims to have 22% of China's polyol market. It also claims 20% of the country’s PU resin market, with 550kT/year capacity. In addition, it has adipic acid facilities, according to the company's website.
The New Materials company was set up in 2007, and has CNY 500m ($75m) registered capital. It has subsidiaries in Wenzhou, Shanghai, Chongqing and Pakistan, with nearly 1,000 employees.
Huafon Group’s businesses also include other chemical products, aluminium, trade, real estate, finance, logistics and information technology. Another arm of the business, Huafon Microfibre, is already listed on the Shenzhen Stock Exchange.
Currency conversion: Xe.com
