Shanghai, China -- Speciality chemicals group Lanxess AG has bought China-based Jiangsu Polyols Chemical Co. Ltd, a maker of polyols including trimethylolpropane (TMP), located in Liyang, to the west of Shanghai.
Lanxess will acquire Jiangsu Polyols Chemical's business and productionassets in a deal expected to close in the third quarter of 2009. Theparties agreed not to disclose the purchase price.
Jiangsu Polyols, a medium sized company set up in 2006, had sales of about Euro 10 million ($14 million) in 2008 and currently employs some 170 staff at Liyang, a facility that Lanxess describes as having "competitive technology."
The Chinese company mainly produces TMP, used in lubricants, paints and coatings. Lanxess's business unit Basic Chemicals is already a major supplier of TMP in China and will integrate Jiangsu into its global operations, said an 8 June statement from Leverkusen, Germany-based Lanxess.
The deal underpins Lanxess's "long-term growth strategy in the BRIC (Brazil, Russia, India, China) countries," said Lanxess. The group simultaneously announced another purchase, of Gwalior, an Indian company that is the largest domestic producer of benzyl products and sulphur chlorides used for agrochemicals and pharmaceuticals as well as in flavour & fragrance products.