Sinochem International acquires Fubia and enters the plastic additives business

Sinochem International (600500.SH), a central chemical enterprise, announced that the company has completed the acquisition of Jiangsu Fubia Chemical Co., Ltd. (hereinafter referred to as "Fubia") on August 26 and officially entered the plastic additives business.

Liu Hongsheng, general manager of Sinochem International, said: “The additive industry is an important part of materials science and one of the important strategic development directions of Sinochem International. This acquisition will help Sinochem International improve the layout of the additive industry and give play to the synergistic advantages of the materials science industry. , Marking the company has taken another firm step towards the goal of'building a world-class material platform'."

Fubia is a plastic additive manufacturer located in Yancheng Binhai Economic Development Zone. Its products include light stabilizers, ultraviolet absorbers, special flame retardants, etc., with 5000 tons/year of benzophenone ultraviolet absorbers and 5000 tons/year The annual production capacity of hindered amine light stabilizers, 5,000 tons/year triacetone amine intermediates, 2,000 tons/year photoinitiators, and 10,000 tons/year phosphorous flame retardants. Its CEPPA flame retardant production capacity is the largest in the world.

In April 2020, Sinochem International and Fubia's original parent company Jiangsu Feixiang Chemical Group began negotiations on mergers and acquisitions. In September of the same year, the two parties signed a letter of intent for cooperation. According to the equity transfer agreement signed by Sinochem International and Feixiang Holdings Pte Ltd and Jiangsu Feixiang Chemical Co., Ltd. in August this year, Sinochem International acquired 100% of Fubia and its subsidiary Qingdao Fuslin Chemical Technology Co., Ltd.

Sinochem International is the core operating company of Sinochem's material science sector. It is currently actively deploying and developing engineering plastics, modified materials, high-performance fibers, electronic chemicals, lithium battery materials and other material science industries. Additive business is an important one. One ring.

In the field of additives business, Sinochem International's rubber additives have achieved the world's leading position and become the world's largest comprehensive service provider for such products. The acquisition of Fubia this time marks the expansion of Sinochem International's business scope into the field of plastic additives, which has the effect of "buying the chain and strengthening the chain" for the company's additive business.

At the same time, the plastic additives business is also highly synergistic with the new materials business of Sinochem International, such as engineering plastics and epoxy resins. At present, the company has a production capacity of 150,000 tons of epoxy resin, and another 180,000 tons of production capacity is about to be completed and put into production in Lianyungang; in terms of engineering plastics, the company’s ABS modification plant in Yangzhou has started construction, and the capacity of the ABS polymerization project planned in Lianyungang is also In the process of close argumentation. This acquisition will help Sinochem International give full play to the synergy advantages of the materials science industry, realize the independent control of the supply chain, and form an integrated solution for the materials science industry.

Su Fu, deputy general manager of Sinochem International, said that in the future, the company will rely on Fubia's existing industrial foundation, superimpose Sinochem International's R&D, operation and resource advantages, accelerate the development of high value-added innovative products, and strive to create a source of original technology in the additive industry. And the modern industrial chain is long, and the company's industrial status and competitiveness in the field of materials science are rapidly improved.

With this acquisition, Sinochem International has also taken the first step in its industrial layout in Yancheng Binhai. In September 2020, Sinochem International signed a strategic cooperation framework agreement with the Binhai County Government of Yancheng City to plan the strategic layout of the company's industrial projects in Binhai.

Taking this acquisition of Fubia project as a starting point, in the next few years, Sinochem International has plans to increase investment and construction in Yancheng Binhai Coastal Industrial Park through a series of mergers and acquisitions integration, introduction and promotion, and use high-performance materials and polymer additives. Based on series products, fine chemicals and intermediates, we will promote project integration around the upstream and downstream industrial chains to create an industry-leading new chemical material recycling economy industrial park.