MOSCOW (MRC) -- Daelim Industrial Co. said in a regulatory filing that it will sign a contract to buy out Cariflex, a chemical business unit of U.S. Kraton Corp, its first overseas acquisition, said Pulsenews.
Cariflex is a global leader in isoprene rubber latex.
The deal is worth 618.2 billion won (USD530 million), over 10 percent of the South Korean construction and petrochemical firm’s equity capital as of last year, and it includes the division’s production facility in Brazil, proprietary technology, business concession and production, research and marketing workforce.
Daelim Industrial will set up a subsidiary in the U.S. to realize the transaction.
Daelim Industrial, the No.-3 builder in South Korea in terms of building capacity, said and the planned business combination will allow it to provide customers with a wider range of innovative products while adding the ability to serve the medical and other high-end markets.
Shares of Daelim finished Thursday 1.5 percent lower at 91,300 won.
As MRC informed earlier, Daelim Industrial Co., a major construction firm in South Korea, said Wednesday it has won a 535.4 billion won (USD462 million) order to build a petrochemical plant in South Korea. Under the deal with Hyundai Chemical Co., Daelim Industrial will build the heavy-feed petrochemical complex in Daesan, some 120 kilometers south of Seoul. The builder aims to complete the project by June 2021. The plant will be able to produce 250,000 tons of polypropylene (PP) as well as 600,000 tons of polyethylene (PE) a year, according to the company.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.
Daelim Industrial is the No.-3 builder in South Korea in terms of building capacity.
MRC