DIC Acquires Tongde New Materials

On July 1, DIC (China) Co., Ltd., a wholly-owned subsidiary of DIC Co., Ltd., announced that the company acquired Guangdong Tongde New Materials Co., Ltd., a Chinese coating resin manufacturer, at an undisclosed price.

According to DIC, DIC produces coating resins in two production bases in Zhongshan and Zhangjiagang, China, and sells them locally. However, in terms of production capacity, these two bases are in a state of full production, and there is no room for expansion. In this case, DIC's acquisition of a local manufacturer with a Chinese customer base is the most effective way to achieve its goal of expanding its business in China, which the company has long sought to reach. Before this acquisition, DIC has set up the head of the coating resin business in China since January 2021. In order to expand its business in the Asian market, it has promoted the construction of its organizational structure and sales management system. Smooth operation is guaranteed.

DIC said that after the completion of the merger, the two companies will rapidly integrate their corporate cultures. On the operational side, DIC will expand the production capacity of Guangdong Tongde Company to double its current production capacity by the end of 2023. At the same time, on the basis of the existing Guangdong Tongde production capacity, sales channels and application technology capabilities, DIC's resin synthesis technology is integrated to provide customers with products with higher added value. DIC will also incorporate Guangdong Tongde's water-based resin products into the company's product group, and promote it in DIC's other business operation bases in Japan, China, ASEAN, India, Europe and the United States.

DIC said that in the medium and long term, combined with the expansion of the Ideal production base in India announced in May 2022, DIC will establish a dominant position in coating resins in Asia and provide environmentally friendly resin products in Asia, striving for 2030. Achieving the target of 5% market share in the region.