- Fifty percent of Kumho Polychem shares acquired from its joint venture partner JSR Corporation.
- Acquisition is expected to enhance Kumho Petrochemical's expertise and competitiveness in the synthetic rubber industry.
On the 11th, Kumho Petrochemical (CEO Baek Jong-hoon) announced that it would acquire 50% of the Kumho Polychem shares held by its joint venture partner, JSR Corporation.
During the company's Board of Directors meeting, the decision was made to strengthen its portfolio in the synthetic rubber business. This acquisition will establish Kumho Polychem as a fully owned subsidiary of Kumho Petrochemical from July onward.
Kumho Polychem is a company that specializes in the production of high performance synthetic rubber such as ethylene propylene diene monomer (EPDM), thermoplastic vulcanisate (TPV), and other materials used in automotive and other industries. The company's EPDM production capability is the fourth largest (220,000 MT/Y) in the world. Kumho Petrochemical explained that the acquisition is a proactive attempt to strengthen the company's competitive advantage in anticipation of the reductions in global EPDM production because of factors such as aging production facilities and the recovery of automobile and other downstream industries.
Regarding the acquisition of Kumho Polychem shares, Kumho Petrochemical commented, 'This decision was made to enhance the group's competitiveness as a whole, based on the competence that Kumho Petrochemical has built in the synthetic rubber industry over the years.' They added, 'Kumho Petrochemical will strive to elevate Kumho Polychem's corporate value through a more rapid and more organic decision-making.'
Kumho Polychem was established in 1985 as a 50:50 joint venture between Korea Synthetic Rubber Industry Co., Ltd. (currently Kumho Petrochemical Co., Ltd.) and Japan Synthetic Rubber Co., Ltd (now JSR Corporation). Its EPDM rubber, a special synthetic rubber material with excellent strength and resistance, is mainly used in automotive body sealing, washing machine tubes, and ship cabling.
Kumho Petro Chemical Co. Ltd. published this content on 11 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 May 2021 05:42:05 UTC.