EANS-News: WACKER Buys Silicone Production Plant in South Korea
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Company Information
October 14, 2010 - Wacker Chemicals Korea Inc. (a Wacker Chemie AG subsidiary) is acquiring the Lucky Silicone brand from Henkel Technologies (Korea) Ltd.. The two companies announced a purchase agreement to this effect today. The transaction still requires antitrust approval.
As part of the acquisition, WACKER takes over not only the rights to this South Korean brand, but also the production plant in Jincheon (some 100 km south-east of Seoul), including the associated real estate. Additionally, WACKER will assume all the inventories and receivables related to this business. The Munich-based chemical company intends to keep on the site´s existing workforce of some 40 employees. The transaction´s closing is expected before year-end 2010. The Lucky Silicone brand mainly comprises silicone sealants, manufactured and marketed for use in construction and other industries. Last year, Henkel Technologies Korea generated sales of roughly EUR 20 million with Lucky Silicone products.
"This acquisition strengthens both our market presence and supply chain in South Korea," said Carlos Weise, president of WACKER SILICONES. "The brand is well established in South Korea and Lucky Silicone sealants are sold across the whole country by numerous distributors. As a result, we will be able to substantially expand our access to customers in South Korea."
WACKER has been supplying chemical products to South Korea since the mid-1980s and, in 1996, set up a local subsidiary - Wacker Chemicals Korea Ltd. Since early 2008, WACKER has been producing vinyl acetate-ethylene dispersions in Ulsan in the south-east of the country. Additionally, WACKER maintains a local technical center to provide research and applications support to its South Korean customers and partners.
WACKER SILICONES WACKER SILICONES is one of the largest silicone manufacturers worldwide with over 3,000 highly specialized and innovative products. The division´s portfolio ranges from silicone fluids, emulsions, resins, elastomers and sealants to silanes and pyrogenic silica. These stand out due to their significant value-adding potential - enhancing both the benefits and performance of customers´ end products. WACKER SILICONES´ products find application in such sectors as construction, chemicals, cosmetics, textiles, automotive, paper and electronics. In 2009, WACKER SILICONES generated some 33% of Group sales.
This press release contains forward-looking statements based on assumptions and estimates of WACKER´s Executive Board. Although we assume the expectations in these forward-looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business environment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services, and changes in corporate strategy. WACKER does not plan to update the forward-looking statements, nor does it assume the obligation to do so.
end of announcement euro adhoc
Further inquiry note:
Christof Bachmair
Media Relations and Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com
Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
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Börsen: Frankfurt / regulated dealing/prime standard