Soprenew Materials plans to acquire Sopre Group’s sulfuric acid assets

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On June 5, Jiangsu Supor issued a announcement stating that its wholly-owned subsidiary, Jiangsu Supor New Materials Technology Co., Ltd. (hereinafter referred to as “Supor New Materials”), intends to enter into an agreement with the company’s controlling shareholder, Supor Group, regarding the purchase by Supor New Materials of Supor Group’s existing 800,000 tons per year sulfuric acid production facility and related assets (hereinafter referred to as “sulfuric acid assets”). 　　Regarding this transaction, Jiangsu Supor stated that Supor New Materials’ purchase of sulfuric acid assets from Supor Group does not constitute an increase in production capacity. This transaction allows the steam generated by existing sulfuric acid production plants to be used as a source of steam for the vinyl acetate and ethylene-vinyl acetate copolymer (EVA) integrated project, thereby achieving a better energy balance and reducing energy consumption. 　　It is reported that on December 8, 2023, Jiangsu Supor planned to invest in the construction of an integrated project for vinyl acetate and EVA through Supor New Materials. The total investment in the project is approximately 7.128 billion yuan, with construction carried out in two phases: Phase 1 involves a vinyl acetate plant with an annual production capacity of 330,000 tons, while Phase 2 involves an EVA plant with an annual production capacity of 300,000 tons. Currently, the heat source for the aforementioned project is planned to be sourced from the relocation and reconstruction process following Supor New Materials’ acquisition of Supor Group’s 800,000 tons per year sulfur-based acid production facility and related assets. 　　Industry experts believe that this transaction will have a profound impact and strategic significance for Jiangsu Supor. First, it will directly enhance the production capacity and resource control of subsidiaries, enabling them to be more independent in the production process. Secondly, the transfer of internal assets helps reduce transaction costs and improve overall operational efficiency. Finally, the vertical integration model helps companies optimize supply chain management and improve the speed and flexibility in responding to market demands.