21 October 2005
21 October 2005
Dutch specialty chemicals company DSM, has acquired Syntech, a producer and marketer of coating resins.
Syntech has annual sales of around USD 30 million, generated with a broad portfolio of coating resins. The acquisition of Syntech further strengthens DSM's liquid coating resins portfolio and will enable DSM to further accelerate the expansion of its activities in the Chinese market.
The acquisition will be cash earnings per share enhancing as of year one.
DSM stated that the coating resins market in China is growing rapidly and that Syntech has a leading position in the industry, adding that its flexible and modern production platform can be quickly adapted to expand production capacity.
Syntech's activities are concentrated at one location in Shunde (Guangdong province). The site includes production facilities, self-owned R&D laboratories and a pilot plant for product development. DSM commented that the company's sales force is of a high quality and covers all relevant areas in China.
Peter Elverding, chairman of DSM's Managing Board of Directors, said that the acquisition of Syntech “is the first step in the context of DSM's new strategy Vision 2010 - Building on Strengths. It serves two key strategic targets: growing our resins portfolio in the Performance Materials cluster and expanding our presence in the emerging China market. The acquisition provides an accelerated growth path into the Chinese coating resins market, from which our new and existing customers will benefit.""
DSM Coating Resins is rapidly growing its leading position in all coating resins markets. The acquisition of Syntech follows the takeover of NeoResins (now DSM NeoResins) in February of this year and will enable DSM to become one of the leading industrial coating resins suppliers in China.
DSM have invested heavily on R&D over the years with last years (2004) total R&D expenditure amounting to EUR 286 million, around 4% of net sales. Worldwide, DSM has approximately 2,000 R&D staff organized around a range of competences at the forefront of technology.