June 10, 2013
Asahi Kasei Chemicals Corp.
Asahi Kasei Chemicals and DuPont China Holdings Co., Ltd. (DuPont) have agreed to a share transfer under which the Asahi Kasei Group will obtain full ownership in Asahi-DuPont POM (Zhangjiagang) Co., Ltd. (ADZ), a joint venture between Asahi Kasei Chemicals and DuPont for the production and sale of polyacetal copolymer in China.
Asahi Kasei Chemicals and DuPont will now advance procedures to receive the necessary approvals from the Chinese government, and begin deliberations with clients regarding the transition. Timing of the share transfer and a new name for the company will be determined upon receipt of such approvals.
ADZ has been producing and selling polyacetal copolymer in China since 2004, meeting growing demand for polyacetal in the Chinese market. When the transfer of ownership is complete, the operation of ADZ will be fully integrated with the performance plastics business of Asahi Kasei Chemicals, with a strategic focus on superior applications development through differentiated products.
Outlook
Polyacetal has a distinctive market because it cannot be easily replaced by other materials. In China and other regions of Asia, demand growth for polyacetal is forecasted in automotive applications. The share transfer announced today will reinforce the position of Asahi Kasei Chemicals as the world’s only producer of both homopolymer and copolymer polyacetal, enhancing its production and marketing capabilities for differentiated grades to further expand business in China and other Asian countries.
About polyacetal
Polyacetal (POM) is a crystalline engineering resin featuring wear resistance, toughness, and chemical resistance. It is used for parts and components in automotive, electronic, electrical, and industrial applications. There are two types of polyacetal: homopolymer, with high rigidity, strength, and fatigue resistance, and copolymer, with high tensile modulus and thermal stability.
Profile of Asahi-DuPont POM (Zhangjiagang) Co., Ltd.
| Paid in capital: | US$32 million | |
|---|---|---|
| Shareholding ratio: | Asahi Kasei Chemicals 50%, DuPont 50%* | |
| Production capacity: | 20,000 tons/year polyacetal copolymer | |
| Location: | Zhangjiangang, Jiangsu, China |
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