Ineos Styrolution, the global leader in styrenics headquartered in Frankfurt, Germany, announced today that it signed an agreement to acquire the global K-Resin styrene-butadiene copolymers (SBC) business of Chevron Phillips Chemical Co. LLC and Daelim Industrial Co. Ltd., the current joint venture owners. The transaction, subject to customary closing conditions and regulatory approvals, includes purchase of the equity interests of K R Copolymer Co. Ltd. (KRCC), K-Resin SBC intellectual property and other assets related to the SBC business. Once completed, the deal will allow Ineos Styrolution to supply its customers from production sites in the Americas, EMEA and Asia Pacific. Financial details were not disclosed.
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The acquisition underlines Ineos Styrolution’s commitment to its Triple Shift growth strategy with a strong dedication to its styrenic specialties business, well-balanced split across all focus industries and improved global presence, said the company in a press release.
The combined business will offer a broad selection of SBC products, including K-Resin SBC and Ineos Styrolution’s existing SBC brands Styrolux and Styroflex, to customers across the globe.
“This measure marks our first acquisition and drives the further implementation of our Triple Shift growth strategy. We will strengthen our ability to offer specialty styrenics products to our customers, and increase our production capacities in Asia. Our customers will benefit from our ability to supply and support their world-wide demand from our expanded geographic footprint, with SBC manufacturing and research and development centers in all major regions, and from the well- known premium K-Resin SBC brand,” said Kevin McQuade, Ineos Styrolution CEO. “With this investment we will further enhance our global presence in styrenics.”
Chevron Phillips Chemical and Daelim Industrial Co. founded KRCC as a joint venture in February 2000. The K-Resin SBC plant is located in Yeosu Petrochemical Complex, the largest petrochemical complex on the southern coast of South Korea.
“I am impressed by the quality of the production site, a formidable operation and by the strong motivation of the staff,” says Steve Harrington, President Asia Pacific, Ineos Styrolution. “We are looking forward to integrate the local Korean assets quickly into our Korean Ineos Styrolution operations.”
Ineos Styrolution reported sales of €5 billion in 2015 and employs approximately 3,100 people and operates 15 production sites in nine countries.