Rhodia to acquire Indian engineering resin supplier
Canadian PlasticsEconomy Plastics Industry Economic Changes/Forecast
Specialty chemical maker Rhodia SA has signed a binding agreement to purchase PI Polymer, the engineering plastics business of India-based PI Industries Ltd.
“This acquisition will reinforce the already strong positions we have in fast-growing economies. We have identified strong synergies with our engineering plastics business in terms of product range and customer portfolio that will dramatically accelerate our growth in India”, said François Hincker, president of Rhodia Engineering Plastics. “We plan to rapidly expand this activity, with a capacity increase scheduled shortly.”
According to Rhodia, the transaction includes all the assets used and held by PI Polymer, consisting mainly of one manufacturing facility that employs more than 80 people, as well as R&D capabilities, and the company’s customer base and logistics network in India.
Subject to various customary closing conditions, the completion of the transaction is expected to be finalized by the end of March 2011.
PI Polymer forecasts about $13 million sales revenue for its fiscal year 2010-2011, Rhodia said.