MOSCOW (MRC) -- BASF, the German chemicals giant, has entered into a definitive agreement to fully acquire the business and assets in Taiwan and Mainland China of Taiwan Sheen Soon (TWSS), a leading manufacturer for thermoplastic polyurethanes (TPU) adhesives base material, as per BASF's statement.
"The acquisition is part of our efforts to systematically pursue growth in the attractive TPU market. It is a valuable addition to our existing TPU portfolio; strengthening our manufacturing footprint in Asia," said Mr Raimar Jahn, President, Performance Materials, BASF. "As TWSS has been at the forefront of TPU adhesives innovation, the acquisition is a strategic move that will strengthen BASF’s competences in this important growth field."
The acquisition of the adhesives business of TWSS complements BASF’s established position in TPU extrusion as well as injection molding grades for various segments, such as footwear. An example of TPU application in the footwear segment is the "Energy Boost" running shoe from adidas, made with expanded TPU, which BASF markets under the name Infinergy.
With the acquisition, the company will become an integrated solution provider for TPU and TPU adhesives, which enhances its value proposition to customers.
The acquisition is expected to close in 2015, pending necessary internal and external approvals. The integration will take effect in 2015. The parties have agreed not to disclose financial details of the agreement.
We remind that, as MRC informed previously, in October 2014, BASF and Archroma agreed on the sale of BASF’s global textile chemicals business to Archroma, a supplier of specialty chemicals to the textile, paper and emulsions industries.
Taiwan Sheen Soon Co., Ltd (TWSS) is a leading TPU manufacturer, specialized in TPU for solvent based adhesive and hotmelt. Established in July 1997, TWSS’s products currently reach over 25 countries worldwide. In 2009, it won the title of the 12th Rising Star in Taiwan.
BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.