Covestro Becomes Majority Stakeholder in Polymer Joint Venture in Japan
The investment is reportedly part of Covestro’s expansion of its global TPU business.
Covestro recently announced it has raised its stake in the joint venture DIC Covestro Polymer Ltd. (DCP) from 50% to 80%. The investment is reportedly part of Covestro’s expansion of its global TPU business. The total investment sums up to a low-double-digit-million euro. Both parties reportedly agreed to not disclose any further financial details of the transaction. Closing of the deal is planned for early second quarter 2019.
“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 Markus Steilemann, Ph.D., CEO of Covestro.
Production and R&D by DCP will continue at Sakai plant located in the DIC facility in Sakai, Osaka Prefecture, getting support from DIC such as supplying feedstocks and providing services on site.
“DCP’s unique local capabilities together with Covestro’s global network will form a powerful combination going forward. The differentiated product portfolio fits well into our pursuit to grow in more resilient, profitable businesses,” said Kimiyasu Yonemaru, president of Covestro Japan. “It shows a clear commitment from Covestro to the Japanese market.”
For more information, visit www.covestro.com.