The world鈥檚 premier manufacturer of petrochemicals, plastics, and building products, Westlake Chemical has confirmed to have entered into a definitive agreement to acquire the global epoxy business of the USA-based Hexion Corporation for USD 1.2 billion. The estimated time of completion of the transaction is during the first half of 2022.
Hexion鈥檚 epoxy business, with a portfolio of base epoxy resins, epoxy speciality resins and intermediate product line, is a pioneer solution for coatings and composites application and is accountable for the gross sale valuing to USD 1.5 billion in the last 12 months ended on September 12, 2021. The acquisition, extending Westlake鈥檚 hold over 1300 associates, five research and development labs located in the US, Europe, and Asia, as well as eight manufacturing facilities dedicated to epoxy-based coatings and composite products, will mark the company鈥檚 expansion in epoxy resin downstream products line that serve a score of end-user industries like non-residential construction, electronics, automotive, aerospace, wind energy etc.
Epoxy resin is a category of the prepolymer, and polymer characterized by the presence of epoxy groups capable of exhibiting strong adhesive qualities. The year 2020 witnessed a global epoxy resin demand of 5 million tonnes which is expected to further rise in the coming 5 years at a CAGR of over 4%.
As per 果酱视频, the acquisition of Hexion鈥檚 epoxy business by Westlake reflects Westlake鈥檚 focus on capitalizing on the fast-pacing epoxy resin demand globally, especially in the automobile and renewable energy sectors. The newly acquired facilities in synergy with Westlake鈥檚 existing supply-chain network and product service expertise will aid in strengthening the company鈥檚 brand and competitiveness in the international market. The addition of a new customer base will support the rise in the company鈥檚 annual revenue.
