 2014-01-24 |
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Precise News January 24, 2014 18:37:33 Reported by Hou Liangru
On January 24, 2014, the YC (4306) board approved a strategic partnership between its subsidiary, ACHEM Petrochemicals, and Toyota Tsusho Corporation. The group announced that, following negotiations, Toyota Tsusho will acquire a 20% stake in ACHEM Petrochemicals for $11.76 million. The two parties will focus on expanding the upstream acrylic acid business in the Chinese and Japanese markets.
YC stated that ACHEM Petrochemicals, located in Nantong, covers 217 acres and involves an investment of approximately $140 million. The first phase of the investment will yield an annual production capacity of 80,000 tons of acrylic acid, 20,000 tons of high-purity acrylic acid, and 80,000 tons of butyl acrylate. This phase is expected to be completed and commence production in the first quarter of this year. Introducing Toyota Tsusho as a strategic partner is expected to increase the application areas for the produced acrylic acid and utilize Toyota Tsusho’s global distribution resources to expand product sales and market benefits.
The two parties have already agreed on operational strategies post-production, initially targeting the Chinese market and gradually expanding to Japan and other global markets.
ACHEM Petrochemicals’ new facility in Nantong, Jiangsu, China, represents YC’s largest investment to date. Its main business focuses on acrylic acid and butyl acrylate. Acrylic acid is primarily used in general acrylate esters, polyacrylic acid, superabsorbent polymers (SAP), water treatment agents, detergents, and other alkyl and specialty acrylate esters. Butyl acrylate is mainly used in adhesives, sealants, coatings, textiles and leather, plastic additives and co-monomers, and in paper and ink.
YC also noted that the group requires over 40,000 tons of butyl acrylate annually, and demand is increasing as business expands. Therefore, with the new ACHEM Petrochemicals facility’s annual capacity of 80,000 tons of butyl acrylate, the group will ensure a stable supply of raw materials. |
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