Oct 30 2006
PolyOne Corporation announced today that it has signed a definitive agreement to acquire the assets and operations of Ngai Hing PlastChem Company Ltd. This business is the vinyl compounding subsidiary of Ngai Hing Hong Company Limited (The Stock Exchange of Hong Kong: NHH). The current shareholders of Ngai Hing Hong, which is headquartered in Hong Kong, will retain a 5 percent interest in a new company that PolyOne will establish to conduct vinyl compound business in Asia.
"Positioning PolyOne to capture growth within Asia is one of our core strategies," said Stephen D. Newlin, chairman, president and chief executive officer. "This acquisition will allow us to bring manufacturing for one of our primary businesses, Vinyl Compounds, to China and help to accelerate our business growth there."
Included in the transaction is the transfer of a manufacturing facility in Dongguan, a city in the Guangdong province of South China. This plant will be PolyOne's fourth manufacturing site in China; the others make products for its Engineered Materials, Color and Additives, and Polymer Coating Systems businesses.
"We are pleased to welcome the associates of Ngai Hing PlastChem Company to PolyOne," said Robert Rosenau, senior vice president and general manager, Vinyl Compounds. "We believe the combination of NHPC's people and assets with our current Asian customer base, broad product line, market knowledge and technology will make for a winning opportunity in China."
As part of the agreement, PolyOne will also receive 6 million common shares of Ngai Hing Hong Company Limited. The transaction is expected to close during the first half of 2007, pending completion of Stock Exchange of Hong Kong requirements, approval by governmental authorities and other customary closing conditions. PolyOne anticipates the acquisition being accretive to earnings in the first full year of operation.