Handshake
INEOS Styrolution is to acquire the K-Resin styrene-butadiene copolymers (SBC) business currently owned by joint venture owners Chevron Phillips Chemical and Daelim Industrial Co. Ltd.
The parties have agreed not to disclose the intended purchase price or any other financial details.
The transaction, subject to customary conditions and approvals, includes the 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.
This acquisition, once completed, will allow INEOS Styrolution to supply its customers from production sites in the Americas, EMEA and Asia Pacific.
“Triple Shift” strategy
INEOS Styrolution says the acquisition underlines its commitment to the company’s “triple Shift” growth strategy, which is dedicated to its styrenic specialities business, a balanced split across all its focus industries and improved global presence.
The company added that its existing SBC brands, Styrolux and Styroflex, complement K-Resin SBC’s portfolio well. The combined business will offer a broad selection of SBC products to customers across the globe. The broader SBC product portfolio will enable the combined business to better serve its customers, INEOS Styrolution says.
“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,” explained Kevin McQuade, CEO INEOS Styrolution.
“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,” he added. “With this investment we will further enhance our global presence in styrenics.”
Joint Venture
Chevron Phillips Chemical and Daelim Industrial Company 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,” commented Steve Harrington, President Asia Pacific, INEOS Styrolution. “We are looking forward to integrate the local Korean assets quickly into our Korean INEOS Styrolution operations.”