 2014-02-06 |
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By Wei Shu, Central News Agency
YC Group (4306) announced that its subsidiary, ACHEM Petrochemical, has entered into a strategic partnership with Toyota Tsusho Corporation, Japan. Toyota Tsusho has acquired a 20% stake in ACHEM Petrochemical at a 20% premium, amounting to TWD 11.76 million, making it a strategic partner.
YC Group stated that the agreement was officially signed recently, and the focus will be on expanding upstream acrylic acid business in the Chinese and Japanese markets.
YC Group explained that acrylic acid is a key raw material for adhesives, and ACHEM Chemical (1715), which leads the tape business, will be the largest beneficiary once ACHEM Petrochemical starts mass production. The group needs over 40,000 tons of butyl acrylate annually, and as business grows, demand will continue to increase. With an annual capacity of 80,000 tons of acrylic acid upon full production, future raw material supply will be secured. ACHEM Chemical will benefit from vertical integration, which will help reduce tape production costs and improve overall profit margins. Additionally, the completion of the "Hai'an Project" in Nantong, China, this year is expected to bring substantial revenue and profit to ACHEM Chemical.
YC emphasized that in recent years, the group has been actively expanding from packaging materials and tapes into upstream raw materials, aiming to achieve vertical integration across the supply chain. The strategic collaboration with Toyota Tsusho will effectively expand sales channels and provide significant benefits for future international market development. |
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