 2014-01-25 |
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Business Times / Reporter: Peng Xuan-Yi / Taipei
YC (4306) Board of Directors approved the strategic partnership between its subsidiary, ACHEM Chemical, and Toyota Tsusho Corporation (Toyota Tsusho). Toyota Tsusho will acquire a 20% stake in ACHEM Chemical at a 20% premium, amounting to $11.76 million (approximately NT$360 million), establishing a strategic partnership with ACHEM Chemical. The two parties will focus on expanding the upstream petrochemical raw material business, specifically acrylic acid, in the China and Japan markets.
YC President Li Zhi-Xian stated that the company has been actively moving from packaging materials and tapes to upstream raw materials in recent years, aiming to leverage vertical integration across the supply chain. This strategic alliance with Toyota Tsusho is expected to significantly expand sales channels and benefit future market expansion in Japan and other Asian regions.
YC requires the purchase of over 40,000 tons of acrylic ester annually. With the expansion of operations, ACHEM Chemical's acrylic acid production capacity will ensure a stable supply of raw materials. Since acrylic acid is a primary raw material for adhesives, ACHEM Chemical, which leads the tape business, is expected to be the biggest beneficiary.
ACHEM Chemical's COO, Li Qi-Zheng, noted that the Jiangsu Nantong facility is the largest investment by YC to date, covering 217 acres. The first phase includes an annual production capacity of 80,000 tons of acrylic acid, 20,000 tons of high-purity acrylic acid, and 80,000 tons of acrylic ester, with completion and production expected in the first quarter. Agreements with Toyota Tsusho on post-production operational strategies have been finalized, with an initial focus on the Chinese market and future gradual expansion into Japan and global markets. |
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