M&As/Partnerships: Westlake to buy ACI’s compounding business; Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical partner to optimise ethylene production in Japan
US-based Westlake Corporation announced that it has entered into an agreement to acquire the global compounding solutions businesses of the ACI/Perplastic Group. ACI is a Portugal-based global manufacturer of specialty materials producing polyvinyl chloride, polyolefins, silicone and thermoplastic rubber compounds for the wire and cable sectors, which helps expand Westlake’s offerings. Terms were not disclosed.
“The combination of ACI with Westlake’s existing compounding business will present an excellent strategic fit and opportunity to integrate with our Housing & Infrastructure Products (HIP) business. It will allow us to further expand Westlake Global Compounds and add new specialty products and technology to our existing portfolio,” said Jean-Marc Gilson, Westlake’s President/CEO.
Headquartered in Guarda, Portugal, ACI has four production facilities, located in Mexico, Portugal, Romania, and Tunisia, which manufacture polyvinyl chloride (PVC), polyolefin, silicone, and thermoplastic rubber compounds. For the 12 months ended December 31, 2024, ACI had net sales of approximately EUR210 million.
The transaction is expected to close in early 2026, subject to the satisfaction of customary closing conditions, including receipt of certain regulatory approvals.
In other news, Japanese firms Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical have established a limited liability partnership (LLP) to achieve carbon neutrality and production capacity optimisation targeting 2030 with respect to the two ethylene manufacturing facilities in total owned by the three companies in western Japan, and will accelerate relevant studies.
The company formed, Setouchi Ethylene, has a target to implement changes by 2030.
The three companies have advanced discussions on specific measures to promote the carbon neutrality of ethylene manufacturing facilities, such as the shift to biomass-based feedstocks and low-carbon fuels in place of petroleum resources, as well as the establishment of an optimised production framework, including potential future capacity reductions.
The discussions encompassed implementation timelines, the roles of each participating company, and the most appropriate form of joint operating entity.
As a result, the three companies determined that they should establish an LLP and further accelerate studies in order to deepen their collaboration and proceed to the phase of execution. Through the LLP, the three companies aim to implement measures for carbon neutrality and achieve a highly competitive ethylene production framework targeting 2030.
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