XINGHUI AUTO MODEL
Chinese toy manufacturer plans to acquire majority shares in SK polystyrene subsidiary
Model car manufacturer Xinghui Auto Model (Shantou, Guangdong / China; www.rastar.cn) has informed the Hong Kong stock exchange of plans to acquire 67.4% of the shares in a polystyrene plant operated by SK Networks PS (Shantou), a subsidiary of South Korea’s SK Chemical (Seoul; www.skchemicals.com). The transaction is valued at about USD 34m, and both companies already signed the relevant contracts at the end of December 2011.
SK Networks operates three production lines with overal capacity for 150,000 t/y of both general purpose and high-impact polystyrene, output of which mostly goes into the manufacture of toy parts as well as household goods.
Xinghui estimates the move will help it reduce polymer costs, which account for about one third of total group raw material expenditures. The Chinese company posted earnings of roughly USD 9m in 2010, with sales of USD 51.3m.
SK Networks operates three production lines with overal capacity for 150,000 t/y of both general purpose and high-impact polystyrene, output of which mostly goes into the manufacture of toy parts as well as household goods.
Xinghui estimates the move will help it reduce polymer costs, which account for about one third of total group raw material expenditures. The Chinese company posted earnings of roughly USD 9m in 2010, with sales of USD 51.3m.
13.01.2012 Plasteurope.com [221280-0]
Published on 13.01.2012
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