INEOS Styrolution Announces Acquisition of K-Resin SBC Business

INEOS Styrolution signed an agreement to buy K-Resin styrene-butadiene copolymers (SBC) business unit of Chevron Phillips and Daelim Industrial

South Korea: INEOS Styrolution Group, a leading global styrenics company has announced the purchase of K-Resin^® Styrene-Butadiene Copolymers (SBC) business unit from K R Copolymer Co. Ltd. (KRCC), a joint venture company between Chevron Phillips Chemical Company and Daelim Industrial Company Limited. The transaction involves the acquisition of equity interests of KRCC, which was founded by Chevron & Daelim JV in Feb, 2000. Moreover, the deal comprises purchase of K-Resin® SBC intellectual property and other assets related to the SBC business. The purchase emphasizes on the INEOS Styrolution’s commitment to its 'Triple Shift' growth strategy with focused improvement in the styrenic specialties business. The K-Resin® SBC complements INEOS Styrolution’s existing SBC brands namely, Styrolux^® and Styroflex^®. The acquisition of new SBC business unit will offer a broad range of SBC products to customers across the globe enabling the combined business to strengthen customer relationships.   

TechSci Research depicts that the purchase of SBC business unit will cater the rising demand of Thermoplastic Elastomers (TPE) in Asia-Pacific, providing services and supplying advanced product range through production sites spread across the country. Moreover, through this acquisition, INEOS would strengthen its presence in the India Thermoplastic Elastomers market since India imports large quantities of SBC manufactured in South Korea and China.

According to the recently published report by TechSci Research, “India Thermoplastic Elastomers Market By Type, By End Use Application, Competition Forecast & Opportunities, 2011-2025”, the market of thermoplastic elastomers in India is anticipated to grow at a CAGR of around 7% during 2016 – 2025. Styrenic Block Copolymers dominated India thermoplastic elastomers market in 2015, and the segment is expected to continue dominating the market through 2025 owing to its wide range of applications in various industries, ranging from automotive to consumer durables. During the forecast period, automotive industry is expected to emerge as the largest end user of TPEs in India, on account of increasing consumer preference for high performance and lightweight automobiles in the country. A major share in the demand for thermoplastic elastomers emanates from Tamil Nadu, Maharashtra, National Capital Region (NCR), Gujarat, Karnataka and Andhra Pradesh, among others.