Kraton Corp.’s plant in Brazil. (image: Daelim Industrial)
SEOUL, Oct. 31 (Korea Bizwire) — Daelim Industrial Co., a major construction and petrochemical firm in South Korea, announced Thursday it has decided to acquire a synthetic rubber unit of American chemical giant Kraton Corp. for US$530 million.
Under the deal, Daelim will get the Cariflex business of Kraton, including its plant in Brazil and related technologies. The acquisition process is expected to be finalized by the first quarter of 2020.
This is the first time that Daelim has acquired a management right for a foreign chemical unit. The company said the move is aimed at expanding its presence as a higher-value petrochemical developer.
Kraton’s Cariflex business produces high-quality synthetic rubber and latex that are widely used in making medical products, such as surgical gloves and needle shields.
Daelim said it is considering setting up synthetic rubber and latex production facilities in South Korea as it expects high demand for such products.
“We expect to have a great synergy between our technologies and Kraton’s latex production technologies,” said Daelim Industrial Vice Chairman Kim Sang-woo.
“We’ll not only focus on materials for medical products, but we also plan to expand our investments in coating and adhesive materials.”
(Yonhap)
