Sinochem Equipment acquiring Yiyang rubber machinery maker

Qingdao, China – Sinochem Equipment Technology (Qingdao) Co., Ltd has announced plans to acquire two machinery businesses in China as part of a strategy to consolidate its position in rubber and chemical equipment manufacturing.

The company will issue new shares to acquire 100% equity in Yiyang Rubber & Plastic Machinery Group and 100% equity in Bluestar (Beijing) Chemical Machinery, according to a 15 July SSE announcement.

The company aims to raise supporting funds through a private placement to up to 35 qualified investors.

Sinochem Equipment, the machinery arm of state-owned Sinochem, specialises in process equipment for the rubber and chemical industries.

The transaction, it explained, will represent “a major asset restructuring” under SSE rules but will not result in a change of control.

The company said it signed equity acquisition intention agreements on 14 July with the current owners: China National Chemical Equipment and Beijing Bluestar Energy Saving Investment Management.

Final terms including valuation, asset scope, and pricing will be negotiated in a formal agreement.

Yiyang Rubber Machinery, based in Hunan, is a long-established supplier of rubber processing machinery such as internal mixers, extrusion lines, and vulcanisation systems.

Beijing Chemical Machinery provides pressure vessels and turnkey solutions for chemical and energy industry clients.

Sinochem Equipment said the acquisition supports its strategy to strengthen its industrial core and scale its operations across critical segments.

The announcement came as the company reported a projected net loss of between Yuan14.7 million (€1.7 million) to Yuan22.1 million for the first half of 2025.

The company linked the decline to weaker investment and demand across the petrochemical and rubber tire sectors.

Revenues from both chemical and rubber machinery businesses fell year-on-year during the period.

However, the company noted that its losses narrowed compared with the same period last year.

This was due in part to the completion of an earlier restructuring in December 2024, which removed certain loss-making overseas units from consolidated accounts.

Looking ahead, Sinochem Equipment said it would continue to focus on market-oriented order acquisition, cost control, and improving operational efficiency in the second half of the year.