M.A. Hanna Company (European HQ: B-1410 Waterloo) has founded a joint venture with Bifan SA, a holding company that controls So.F.teR Spa (Via Mastro Giorgo 2, I-4700 Forli), a leading Italian producer of thermoplastic elastomers. Closing of the deal, for which terms were not disclosed, is expected by the end of 1998. M.A. Hanna will hold a majority stake in the new company.

With annual sales of around USD 60m, So.F.teR considers itself a leader in the fast-growing market for thermoplastic elastomers. It is active in wire and cable, automotive, electrical and electronics, as well as shoe markets. Production facilities for thermoplastic elastomers and engineering thermoplastics are located at Forli, near Bologna, and at two other Italian sites. While most of its business is within Italy, it also exports throughout Europe and to Latin America. The existing management team will be retained.

The new joint venture is consistent with Hanna´s strategy of investing to gain geographic coverage and market expansion, said Garth W. Henry, executive vice president of worldwide plastics. He added that “So.F.teR is a well-established business with recently completed state-of-the-art manufacturing capability.” The move expands Hanna´s geographic reach to southern Europe and consolidates the US-based group´s own leading position as an independent plastics compounder.