Bayer MaterialScience to acquire Taiwan’s Ure-Tech Group

Bayer MaterialScience (Leverkusen, Germany) will acquire Taiwan’s Ure-Tech Group, the largest thermoplastic polyurethane (TPU) producer in the Asia Pacific region. With this acquisition, Bayer will become the world’s largest supplier of TPU resins and films. The deal is subject to regulatory approval by the cartel office and is expected to be closed in the first quarter of 2007. Both parties have agreed not to disclose purchase price and other related details of the acquisition. In 2005, approximately 180 employees of the Ure-Tech Group generated sales of around $55 million. Sales of Bayer MaterialScience’s Business Unit Thermoplastic Polyurethanes amounted to €192 million last year with roughly 450 employees.

Combining its activities with Ure-Tech will substantially strengthen Bayer MaterialScience’s existing TPU market position in Asia Pacific, significantly widening and solidifying its market access, especially in Taiwan, China, and the South Asian countries.

This acquisition will solidly position Bayer MaterialScience to tap into the significant growth potential for TPU resins in Asia Pacific, especially China. It also provides the impetus for Bayer MaterialScience to accelerate its global growth in the TPU resins market. In 2005, the total TPU resins and films market was worth about €1.2 billion.

Together with Ure-Tech’s production facilities, Bayer MaterialScience will have in close proximity to its customers a total of six TPU resins and two film-production facilities in North America, Europe, and Asia Pacific. Four of these are in Asia Pacific: Taichung, Taiwan; Shenzhen in Southern China; Cuddalore, India; and Osaka, Japan (a joint venture with Tokyo-headquartered Dainippon Ink & Chemicals). The other four are in New Martinsville, WV; South Deerfield, MA; and in Dormagen and Bomlitz, Germany.

“All production facilities will be linked up as a global network and therefore will significantly increase our flexibility to supply customers around the world,” Tim Bielfeldt, head of Bayer’s TPU business unit, added.

The company stated that customers will benefit from its backward-integration with raw materials, which ensures the security of supply, as well as the forward integration with films, from Deerfield Urethane and Epurex Films.

Bayer MaterialScience, together with Ure-Tech, will offer globally known Desmopan and Texin brands, and in Japan, Pandex (from the joint venture with Dainippon Ink & Chemicals, Inc.) has been commercially available for some time. In addition, Ure-Tech’s Utechllan is a broadly recognized brand among Asian customers.—Stephen Moore; [email protected]