Fuzhou, 17 January 2022 – Fujian Highsun Engineering Plastics (“HEP”, part of HSCC, also known as Highsun group (“HIGHSUN”)) and AKRO-Plastic GmbH (“AKRO”, part of the Feddersen Group) have signed the contract to establish a Joint Venture for Engineering Materials. Subject to regulatory approval in the relevant countries, HEP will hold 51%, and AKRO 49% of the shares. The joint venture will operate under the name Highsun AKRO Engineering Materials (Changzhou) Co., Ltd.
The joint venture will start making use of the existing physical assets and high-end technology available at AKRO’s site in Changzhou through HEP acquiring 51 % of the shares of AKRO Engineering Plastics (Changzhou) Co., Ltd. At this facility, high-end Engineering Materials are already manufactured. The market coverage of this joint venture is Greater China.
“This joint venture is a big leap for the Highsun Group. It is the group’s first foray into Engineering Materials in which it has a strategic ambition to develop a leadership position, next to its global #1 position in caprolactam, PA6 and PA6 fibre. We are confident that the need for high-quality, reliable, differentiated and locally produced Engineering Materials through this joint venture will grow well above market growth rates in the coming years. The joint venture partners have fully complementary strengths whereby the Highsun AKRO partnership will benefit from a world-class backward integration in the polyamide 6 chain.” said Roelof Westerbeek, Vice President, New Materials Division of Highsun Group.
Typical end-markets that are expected to require the joint-venture’s products are Automotive (both the traditional internal combustion and increasingly, the electrical vehicle segment, China already having the largest electrical vehicle sales globally), Electrical and Electronics (China is today’s globally leading manufacturing region for E&E products and components), Consumer Electronics as well as other Consumer Goods and Health & Wellness Products.
The combination of Highsun’s and AKRO’s core competencies will create a great platform for accelerated and ambitious growth, enabling the joint venture to become one of the leading integrated players in China. AKRO’s renowned ICX® compounding technology, advanced R&D and engineering capabilities, bundled with HEP’s world-leading polyamide polymerization capabilities, its
proven and reliable backward integrated supply chain as well as its extensive knowledge of local needs and its local network and relationships, support the ambitions of both parties.
The antitrust authorities must give their approval to the share transfer which is expected in about 3 months. Details about present and future capacities and of the financial transaction will not be disclosed.