Carlyle Group injects $87m into Sinorgchem's PPD unit
ERJ staff report (DS)
Beijing, China - Global private equity firm The Carlyle Group and Sinorgchem (Group) Co.have said that Carlyle will invest US$87 million in Sinorgchem. Sinorgchem is the largest Chinese supplier of para-phenylenediames (PPDs), a key chemical additive in the production of rubber products. Further financial details of the recently-closed deal were not disclosed.
Since its establishment in 1999, Sinorgchem has achieved rapid growth. It is the largest PPD manufacturer in China and a supplier of intermediary product 4-aminodiphenylamine (4-ADPA) to PPD manufacturers in Asia.
Sinorgchem's PPD operations are currently the subject of a bitter legal dispute between Sinorgchem, the Flexsys unit of Solutia and Korean Petrochemical company, KKPC. Flexsys alleges that KKPC illegally passed proprietary Flexsys intellectual property about the production of 4-ADPA on to Sinorgchem. Both KKPC and Sinorgchem deny this.
Carlyle said China's consumption of rubber, specifically tyres, is growing rapidly driven by growing local automotive markets and increasing relocation of global tyre production capacities to China. PPDs are a critical input in the production of rubber products, predominantly tyre, as they are essential to prevent premature ageing of rubber.
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Press release from Carlyle
Carlyle buys stake in Chinese chemical company Finance Asia (China)
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