Chinese engineering plastics maker Kingfa Sci & Tech is set to acquire controlling stake in Indian compounder Hydro S&S Industries, which has been making losses for the past two years. The public-listed Kingfa will acquire a 66.5% stake in Hydro S&S for around Rupees10 crores, say news reports. The acquisition will help Kingfa Sci to establish a direct connect with original equipment manufacturers whose clients include automobile majors including Maruti and Hyundai. Hydro, which has a capacity of 30,000 tonnes/year of reinforced PP compounds, TPEs and fibre-reinforced composites, is also a supplier to OEMs of Hyundai for its dash boards and bumpers.

Kingfa offers modified plastics, special type engineering plastics, fine chemical materials, biodegradable plastics, and wooden-based materials, as well as carbon fibres and its composites. Its products are used in automobiles, electronic appliances, industrial equipment, consumer goods, toys and packaging products.