Dawn Polymer expands with two China rubber investments

Longkou, China – Dawn Polymer Materials is expanding its speciality rubber activities with two recent investments in Chinese rubber and elastomer manufacturers with a combined value of Yuan40.8 million (€5 million).

In two separate 28 Aug stock exchange filings, the Chinese materials supplier said it was buying a 6.7% stake in Beijing Xinxiang Special Materials Technology for Yuan9.39 million; and acquiring a 91.4% interest in Jiangsu Beihua Xinxiang New Materials Technology for Yuan31.46 million.

According to Dawn, Xinxiang produces speciality rubber compounds and products, electromagnetic shielding high conductivity rubber, thermally conductive interface materials, coated conductive powders, halogen-free flame-retardant cable materials and thermoplastic elastomers.

Based in Beijing, Xinxiang’s electromagnetic shielding and thermally conductive rubber products serve applications in “green energy, communications electronics, the automotive industry, and rail transportation,” Dawn said.

“With the continuous expansion of 5G infrastructure, energy storage, and new energy vehicles, the market demand for conductive and thermally conductive rubber is expected to remain stable and upward in the long term,” it added.

Dawn Polymer described its 6.7% purchase as “primarily a financial investment arrangement” based on its assessment of the development prospects for “high-value-added products such as electromagnetic shielding rubber and thermally conductive rubber.”

The second transaction will give Dawn Polymer control of Jiangsu Beihua Xinxiang New Materials Technology, with the subsidiary to be included in Dawn’s consolidated financial statements.

Dawn said the acquisition “aligns with the company's strategic development plan” and will “optimise the company's product portfolio”, building on its existing power and communication cable materials businesses, including TPV speciality cable materials and polypropylene (PP) cable materials.

Both transactions will be funded from Dawn’s own funds and, the company said, neither will have a significant impact on its financial or operating position.