Sinochem news recently, Elkem and Guangdong polymerization Polytron Technologies Inc (polymerization shares) reached an agreement to buy all shares of the latter.
Poly is a leading silicone elastomer and silicone material manufacturer in China, occupying a strong position in infant care, food grade silicone, electronic products and medical devices markets. After the completion of the acquisition, Elkem and aggregator will further expand the Chinese market and lay a solid foundation for the growth of global special businesses by combining their complementary advantages in products and market position.
According to reports, poly stock is a private enterprise located in Zhongshan City, Guangdong Province, China. The company is a technology leader in the research and development and production of high temperature vulcanized silicone rubber (HCR), liquid silicone rubber (LSR), special silicone resin and pressure sensitive adhesive (PSA). The company has two production bases and a research and development center with more than 50 scientific and technical personnel. In 2019, it is estimated that the total operating revenue of the aggregate shares will be RMB 612 million.
The two sides have now reached an agreement on the enterprise value of the aggregate shares, which is expected to reach 941 million yuan, including potential earnings, depending on pre agreed parameters.
Michael Koenig, chief executive officer of Elkem, said: "the acquisition of polymer shares will help consolidate our position in China's special silicone market segment, make full use of Elkem's upstream production capacity of raw materials and intermediates. In addition, the product mix of polymer shares and Elkem can complement the market position at home and abroad, and the combination of the two will produce huge cooperation The same effect. "
About 90% of aggregate's operating revenue comes from the Chinese market (mainly in South China), while Elkem's position and influence in other regions of China and foreign markets will provide a solid platform for aggregate's products and further development.
Frederic Jacquin, senior vice president of Aiken silicone, said: "the products of the polymerization stock and its market position in the food, baby care, electronics and medical industries will inject vitality into Aiken. Aggregate shares occupy a strong position in the fast-growing South China market. The consumption of silicone rubber in this region accounts for about half of the whole Chinese market. With its professional advantages in the field of high-end liquid silicone rubber and pressure-sensitive adhesive, the company has further expanded the products and markets of both sides, with great potential. In addition, the strong R & D strength of aggregating shares can be said to add to our strength in developing products for China and the global market. "
The acquisition is pending final regulatory approval and is expected to be completed by the end of the first quarter of 2020.
Founded in 1904, Elkem is one of the world's leading suppliers of silicon-based advanced materials. Its business covers the all-round product value chain from silicon metal to special silicon, and it has a market leading position in special ferrosilicon alloy and carbon materials. Ekin is a company listed on the Oslo Stock Exchange, with its headquarters in Oslo. With more than 6200 employees, the company has 27 production bases and sales offices in 28 countries. In 2018, Elkem's operating revenue was NOK 25.9 billion.