AkzoNobel to buy China specialty surfactants firm Boxing Oleochemicals
AkzoNobel has agreed to acquire China-based Boxing Oleochemicals, allowing it to strengthen its position in specialty surfactants while enhancing its manufacturing footprint in Asia, company officials said.
Boxing is the leading supplier of nitrile amines and derivatives in China and throughout Asia.
Established in 1993 and based in the province of Shangdong, Boxing had revenues in 2010 of approximately €100 million.
Its activities will be integrated into AkzoNobel’s surface chemistry business, a leader in the manufacture and supply of specialty surfactants, synthetic and bio-polymers additives, used as formulation ingredients and process aids in applications ranging from home and personal care to asphalt road paving.
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, officials said.
“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,” said Rob Frohn, AkzoNobel’s executive committee member responsible for specialty chemicals. “Boxing’s leading market position in amines will complement AkzoNobel’s growing specialty surfactant business in Asia.”
Bob Margevich, managing director of AkzoNobel surface chemistry, said: “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,” he added. “We will also introduce new products to the marketplace based on AkzoNobel’s product and application knowhow.”
The completion of the transaction is subject to closing conditions, including the approval of the Chinese authorities.
It is expected to be finalized in the last quarter of 2011.
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