Leverkusen, Germany - As Bayer MaterialScience finalised the purchase of thermoplastic polyurethane producer Taiwan Ure-Tech Group on 1 July, the group announced that it will now make Hong Kong the headquarters of its TPU business.
Adding Ure-Tech makes Leverkusen-headquartered BMS the "the world's largest supplier of resins and films," a company statement said.
The parties did not reveal financial details of the transaction.
BMS's plan to move its global TPU Business Unit headquarters to Hong Kong by 1 Oct 2007, "highlights the importance of the region," said Dr Tim Bielfeldt, global head of the TPU Business Unit, in the BMS statement.
BMS can now combine the "strengths of Ure-Tech as a TPU market leader in Asia Pacific with Bayer's global competence," and the addition leaves the group as "the best-positioned global supplier of TPU resins and films and related solutions," Bielfeldt claimed.
Frank Huang, formerly ceo of Taiwan Ure-Tech and now a member of the TPU management team, described as "exciting" the prospects for coupling BMS's global strengths with, "our market knowledge, product portfolio and customer focus in Greater China."
BMS said adding Ure-Tech significantly expands the company's market share in TPU resins in Asia Pacific. Ure-Tech's two TPU production facilities in Asia Pacific gives the business eight TPU resin and film production sites around the world: four are in Asia Pacific - in Taiwan, China, Japan and India - while the others are in Europe and North America.
Bielfeldt stressed that BMS now has "a solid leadership position, letting us tap into and capture future growth in the world's largest and fastest expanding TPU market - Greater China."
In 2006, BMS said, estimates put the value of the global market for TPU resins and films at about Euro 1300 million ($1766 million), with annual growth in the Asia Pacific TPU market at roughly 10 percent.
Ure-Tech Group's 200 employees generated sales of around $63 million in 2006, while BMS TPU business had sales of Euro 205 million with about 450 employees. Both parties have agreed not to disclose the purchase price."