Thread Content
https://mpt.135editor.com/mmbiz_png/uN1LIav7oJibIAVbxVP9jrcWgeic1wDWWZ9udAiaG7zmLNukIfHkXuHBxtn7kL5EzZ7C4ymq98DNU2aXmSx2FEozQ/640?wx_fmt=png Recently, Sinochem Group Co., Ltd. announced that one of its subsidiaries, Qingdao Tianhua Yuan Chemical Engineering Co., Ltd., has secured approval from the National Development and Reform Commission for an overseas investment project worth 928 million US dollars (approximately 6.062 billion yuan). This means that the acquisition has been approved at the national level. According to Tianhua Institute, it will acquire 100% of the shares in the German KM Group by issuing new shares. KM Group is one of the leading companies in the global rubber and plastic machinery industry; this company, headquartered in Munich, Germany, owns three brands: KraussMaffei, KraussMaffei-Bertschdorf, and Netzsch. According to China Rubber, the German KM Group is a wholly-owned subsidiary of China National Chemical Equipment (Luxembourg) S.à.r.l., and the shares of the latter are held by companies under China National Chemical Equipment Corporation. In other words, Tianhua Institute’s substantial acquisition represents an internal \"asset transfer\" within China National Chemical Corporation. Sources familiar with the matter told China Rubber that Tianhua Institute’s acquisition is aimed at resolving competition within the same industry, as well as at facilitating the integration of the equipment-related assets under Sinochem as soon as possible, so that the synergies resulting from cross-border mergers and acquisitions can be realized promptly. According to previous announcements by the company, 100% of the shares of China’s renowned rubber machinery manufacturers, Yiyang Rubber Machinery and Guilin Rubber Machinery, have been placed under the custody of Tianhua Institute. In earlier statements, Tianhua Institute said that Yiyang Rubber Machinery is currently carrying out the necessary relocation procedures, with completion expected in 2019; however, it will still take some time for the company to reach its desired production capacity, meaning there is a certain degree of uncertainty regarding its profitability in the short term. Similarly, due to poor operational conditions, there is also uncertainty regarding the profitability of Guilin Rubber Machinery’s asset portfolio in the short term. Editing | Guan Guan