Oslo – Elkem ASA has completed the previously announced acquisition of Chinese silicone elastomer and resins material manufacturer Polysil, for an enterprise value of RMB 941 million (€122 million).
Based in Zhongshan, Guangdong, China, Polysil has a strong position in baby care and food grade silicones, as well as products for the electronics and medical markets, Elkem said in a 14 April statement.
The acquisition, said Michael Koenig, CEO of Elkem ASA, is “an important milestone” for Elkem, strengthening the company’ position in specialised silicones segments in China.
With over 350 employees, Polysil is specialised in the production and development of heat cured rubber (HCR), liquid silicone rubber (LSR), speciality resins and pressure sensitive adhesives (PSA).
With two production facilities and a research and development centre, the privately-owned company generated an operating revenue of RMB624 million and an after tax earnings of RMB 95 million in 2019.
According to Elkem, approximately 90% of Polysil’s revenues are generated in China, primarily in South China.
Elkem, on the other hand, is present in other parts of China and internationally, providing a platform for Polysil’s products and further growth.
“Polysil's products and market positions in food, baby care, electronics and medical markets are complementary to Elkem,” said Frederic Jacquin, SVP for Elkem’s silicones division.
According to Jacquin, Elkem sees “significant potential” in Polysil's liquid silicones rubber and pressure sensitive adhesives.
“Polysil's strong research and development capabilities will be very important for development of products for both the Chinese market and globally,” he added.