The leading specialty chemicals company Perstorp has acquired yet another business in the Chinese province of Shandong, including a production plant for Neo (Neopentyl glycol). The acquisition consolidates Perstorp’s leading position in polyols and is a natural development of the investment production made last year in China.
Perstorp, which has grown strongly both organically and through company acquisitions in the past year, has, through its joint-venture company Shandong Fufeng Perstorp Chemical Co Ltd., signed an agreement with the Chinese polyol manufacturer Zibo Linzi Yongliu Chemical Industry Stock Co Ltd. for the acquisition of its Neo manufacturing business. The takeover took place at year end. Sales for 2008 are expected to amount to SEK 300 m.
Yongliu is China’s second largest manufacturer of Neo polyol and the manufacturing plant, with a 20,000 ton annual capacity, is located in the Linzi district of Zibo City, where Perstorp already has a production facility for the TMP (Trimethylolpropane). The acquired business has around 150 employees and has been in operation since the late 1990s.
“The acquisition is a natural second step for us to rapidly expand our business in China. Perstorp has sold products in China for about 20 years, and it’s important for us to expand and further develop local production so we can provide our customers with top-quality service,” says Bo Dankis, President and CEO of Perstorp. “We’ve worked quickly and in less than a year acquired two production facilities in China, which is very pleasing.”
Perstorp is planning a few minor environmentally-related investments at the facility.
Facts about polyols and Neo
Polyols, or poly-alcohols as they’re actually called, are a chemical compound where the molecule contains a number of hydroxyls (OH) groups. Neo is a polyol mainly used in manufacturing eco-friendly paints and coating systems, mainly powder coatings.