Rogers, Connecticut -- Rogers Corp. has signed an agreement with South Korea-based SK Chemicals Co. Ltd. to acquire the company's polyurethane foam manufacturing plant, SK Utis Co. Ltd, based in Ansan, South Korea, for $29.1 million.
The deal, in which Rogers gains an initial 90 percent majority share in SK Utis with the remaining 10 percent two years later, is expected to close within the next few weeks, a 23 March Rogers statement said.
Established in 2005, SK Utis supplies PU foam solutions for portable communications, entertainment and industrial applications to major Korea-based OEMs. In 2009 sales were around $12 million, the statement added.
Rogers said it plans to bring the business into its High Performance Foams Division, adding to its current manufacturing plants in Woodstock, Connecticut; Carol Stream, Illinois; and Bremen, Germany. As part of a joint venture with INOAC Corp. of Japan, Rogers also has manufacturing locations in Mie, Taketoyo, in Japan and in Suzhou in China.
"SK Utis has established a solid presence as a solutions provider in several key markets that Rogers is targeting for continued growth, including mobile internet devices, high definition TV, and other markets requiring high reliability, high performance materials," said Rogers senior vice president, Peter Kaczmarek. "SK Utis also has excellent relationships with some of the fastest growing makers of these products, and the acquisition extends Rogers' worldwide presence into the dynamic Korean marketplace," Kaczmarek added.
Rogers said in the statement that it has targeted its High Performance Foams Division for "continued strategic investment." (RD)