Tokyo - The Yokohama Rubber Co. Ltd (YRC) is selling its Hamatite sealing and adhesive materials business to Swiss-based chemicals specialist Sika Group, it was announced 28 April.
The transaction is to be completed on 1 Nov, said a Yokohama statement without giving further financial details.
Operated by Yokohama Industrial Products, Hamatite operates five plants, the main site being in Hiratsuka, Japan. Additional manufacturing facilities are located in Japan, China, Thailand, and the US.
As part of the deal, Yokohama Rubber will carve out the business from its industrial products segment and create a series of subsidiaries which will then be transferred to Sika’s subsidiaries in Japan, US and China.
Yokohama Rubber started the Hamatite business in 1958 and has since grown the operations with a focus on automotive and construction sealants and adhesives.
Despite offering 'high quality and performance products', the business has faced challenges in the current market environment, Yokohama Rubber noted.
“After thoroughly considering how best to achieve further growth and development of the Hamatite business, the company decided… [it] could be best developed together with a global industry leader,” it added.
The move to divest Hamatite, Yokohama said, is part of the new medium-term management plan – Yokohama Transformation 2023 (YX2023) – which was unveiled in February.
The plan outlines growth strategies for each of YRC businesses to ‘transform’ Yokohama into a “corporate group.”
In a separate announcement, Sika said Hamatite was "a highly recognised, trusted supplier with a strong, reputable brand, holding a leading position in the Japanese automotive and construction industry."
Hamatite's product portfolio comprises various technologies such as polyurethanes, hot melts, and modified silicones.
The brand, according to Sika, is "the preferred solution" among the Japanese OEMs for glass bonding as well as for hot melt applications.
The main application area in the construction industry is sealing and bonding solutions for exterior facades.