Amid signs of saturation in their own markets, and the resulting slowdown in growth, Chinese companies have started to change tack in favour of one of the cheaper growth strategies: the acquisition of existing players, with established customer bases and access to varied market segments. In the chemical industry, which also comprises most plastics activities, China accounted for 21% of all M&A deals concluded last year, worth a total of USD 110 bn. This means the People’s Republic now ranks just one percentage point behind the US. This spring, consultancy A.T. Kearney predicted another massive rise in Chinese M&A activities this year, adding that the brunt of the latest offensive will be felt in Europe especially.

Indeed, data published by fellow consultant Ernst & Young show that Chinese companies acquired a total of 164 European firms in H1 2016 – compared to just 101 in the first six months of 2015. At USD 72 bn, the overall value of the transactions completed in H1 this year already exceeds that spent during the last three years combined. In Europe, most Chinese M&A activity in the industrial segment is focused on Germany. Some of the big players that are now in Chinese hands include plastics industry heavyweights like KraussMaffei and Kuka.

A poll conducted by Plasteurope.com sister publication Kunststoff Information among its readers in July this year showed that most of them are wary of this trend. A majority of respondents fear negative repercussions, with almost 75% worried about a technology sellout. Are these fears founded? Is the recent M&A offensive part of a quest towards global domination or are these companies merely acting in accordance with the rules dictated by capitalism? And what about granting EU companies open access to the Chinese markets, as many industry representatives are calling for in return? These questions are part of the morning session of the “KI Group Polymer Summit”, which takes place on 20 October as part of the leading “K 2016” industry fair in Düsseldorf / Germany. Speakers include top managers from both companies and service providers, specifically Reifenhäuser, Adsale, Covestro, RKW, PriceWaterhouseCoopers, Boge Rubber & Plastics and KraussMaffei.

The conference will be held in English. Participation is free of charge. With a limited number of seats available, we recommend that you pre-register for the event. For registration and details, please visit www.ki-group.de/k2016-summit

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