Published on : Sep 12, 2013
Croda International, a global manufacturer of specialty chemicals has received a go-ahead from Chinese regulatory authorities to acquire a 65% equity interest in Sichuan Sipo Chemical Co.
Sipo, established in 1993, is a non-listed manufacturer of specialty chemicals, with a manufacturing facility in Mianyang City in China\'s Sichuan Province. Its modern manufacturing plant was built in 2011. The 300-employee strong company is focused on the manufacture of specialty derivatives from natural raw materials. Its product portfolio comprises primary amides, specialty esters and novel fatty acids.
By acquiring majority stake in Sipo, Croda will be able to boost its existing Asia operations by being in close proximity to customers in the region. As a result, the company expects to be more responsive to the needs of customers in Asia-Pacific.
The Sipo deal is significant in that it consolidates Croda\'s global edge as a fatty acid amides manufacturer. Sipo\'s technologies will also help Croda supplement its existing product range across core markets.
Except for a few by-products, Croda will sell nearly all of Sipo\'s products via its worldwide sales channels. According to Croda officials, the company will initially focus on improve sales figures from its Performance Technologies business to the Lubricants and Polymer Additives sectors.
Croda officials term this acquisition as a definitive step towards strengthening the company\'s presence in emerging markets by combining Sipo\'s manufacturing capabilities and their marketing expertise.