AkzoNobel to acquire Chinese speciality surfactant producer
Boxing Oleochemicals to enhance manufacturing footprint in Asia
AkzoNobel is to acquire Chinese speciality surfactant producer Boxing Oleochemicals in a move the company says will further strengthen its leadership position in this product sector while enhancing its manufacturing footprint in Asia.
AkzoNobel says Boxing is the leading supplier of nitrile amines and derivatives in China and throughout Asia. The company was established in 1993 and is based in Shangdong, achieving revenues in 2010 of around €100m. The company’s activities will be integrated into AkzoNobel’s Surface Chemistry business
Demand in Asia for amines and derivatives is being driven by population growth, expanding middle class, increased focus on sustainability and the build-up of infrastructure, notably in China and India, says Akzo Nobel.
“This is an excellent opportunity which couples our strategic ambition to accelerate growth in Asia with our commitment to locate production closer to our customers,” adds Rob Frohn, AkzoNobel’s executive committee member responsible for speciality chemicals.
Bob Margevich, md of AkzoNobel Surface Chemistry comments: “The demand for amines and derivatives is expected to increase significantly over the next few years, with a third of the Asian demand for amines coming from China alone. We plan to enhance the process capabilities and increase capacity at the Shangdong site by introducing our state-of-the-art manufacturing technology. We will also introduce new products to the marketplace based on AkzoNobel’s product and application know-how.”
The deal is expected to be finalised in the last quarter of 2011. It is subject to closing conditions, including approval from the Chinese authorities.
AkzoNobel currently employs over 6,700 people in China. Revenue for 2010 was €1.3bn, the majority of this being generated from local demand. The company hopes to achieve revenue of $3bn in China by 2015.