Officials of the Jotun Group (N-3235 Sandefjord) and Reichhold Chemicals Inc (Research Triangle Park, NC / USA) have reached an agreement under which Reichhold will acquire Jotun Polymers, Jotun's polyester resin business. The deal will give Reichhold a strong share of the European unsaturated polyester market, complementing its leadership position in the North American market.

Reichhold, a subsidiary of Dainippon Ink & Chemicals Inc, will takeover all the activities of Jotun Polymer, including production units and sales companies in Europe, the Middle East and South East Asia. The financial terms of the deal were not disclosed. Jotun Polymer has annual production of approximately 70,000 t.

The deal marks an important strategic move for both groups. Jotun, a worldwide manufacturer of paints and powder coatings, had announced earlier this year that it might sell the polyester division in order to concentrate on its core businesses. For Reichhold, a leading producer of polymers and adhesives, the acquisition will help to strengthen its presence in Europe.