Dexco deal makes TSRC a global player

By Frank Esposito Crain staff (PN)

Plaquemine, Louisiana -- TSRC Corp. has wrapped up its acquisition of Dexco Polymers and is looking forward to serving the market as a global supplier of styrenic block copolymers.

Taipei, Taiwan-based TSRC bought Plaquemine, La.-based Dexco for $168 million late last year from Dow Chemical Co. and ExxonMobil Chemical Co., which has operated Dexco as a joint venture.

TSRC President and CEO Wei-Hua Tu - and several other TSRC executives - recently visited Plaquemine to close the deal.

Acquiring Dexco “will make TSRC one of the top global producers of SBC and create a global leader in the industry,” Tu said in a phone interview.

Tu described Dexco's materials portfolio - including Vector-brand SBCs - as “high-end,” including applications in adhesives, consumer disposables and polymer modification. The purchase also gives TSRC access to markets in North America and Europe, where it previously had not done much business. Most of TSRC's sales have been centered in Asia.

“We're going to re-arrange and maximise the product portfolio,” Tu said.

Dexco President Chris Mudd and other Dexco executives will remain with the firm, which will continue to operate as Dexco Polymers.

“We want to provide consistency with customers,” Tu said of the decision to retain Dexco personnel. “Dexco has very deep customer relationships in North America and Europe.”

“We're looking forward to learning and growing together,” Mudd said.

Dexco employs about 70 and operates almost 140 million pounds of annual capacity. TSRC declined to release sales numbers for Dexco.

Tu added that TSRC “is still looking for potential acquisition opportunities in the US and also in Europe in the next five to 10 years.” The firm also will look into expanding Dexco's SBC capacity in Plaquemine.

TSRC produces styrene-butadiene rubber and polybutadiene rubber. Its SBR is used in passenger tyres, shoe soles, conveyor belts, tank and tractor tracks and other products. The firm also makes Taipol TPE for adhesives, industrial compounds and shoes.

The Dexco acquisition will make TSRC one of the world's five largest SBC makers, company officials said. Prior to the acquisition, TSRC had ranked eighth in that field.

From Plastics News (A Crain publication)

Dexco Website (Includes brief statement on acquisition)