Covestro becomes major stakeholder in DIC Covestro Polymer jv in Japan

Covestro, a leading supplier of high-performance resins and globally a top three producer of thermoplastic polyurethane (TPU), has raised its stake in the joint venture (jv) DIC Covestro Polymer Ltd (DCP). DCP, a jv between Dainippon Ink & Chemicals Inc (now, DIC) and Bayer, is a leading company in the Japanese TPU industry. The investment is part of Covestro’s expansion of its global TPU business. Financial details of the transaction have not been disclosed. Closing of the deal is planned for early second quarter 2019, subject to the approval from the relevant authority.

“The strong and long-term partnership of both companies, as well as our thorough understanding of the future growth potential make this acquisition a fitting step in Covestro’s growth strategy focusing on sustainability driven innovation“, said Dr Markus Steilemann, CEO of Covestro.

Meanwhile, production and R&D by DCP will continue at Sakai plant located in the DIC facility in Sakai, Osaka Prefecture. The latter will be supplying feedstocks and providing services on site. DIC is also an important partner for Covestro in other Coatings, Adhesives and Specialties business. The acquisition complements Covestro’s recent organic global capacity expansions of TPU sites in New Martinsville (US) and Changhua (Taiwan), which raises the respective annual TPU production capacities by approximately 25% each.

(PRA)

---

Subscribe to Get the Latest Updates from PRA  Please click here