Industry News

ChemChina to buy KraussMaffei Group for USD1 Billion

China: China National Chemical Corp. (ChemChina), along with a group of investors, has agreed to acquire KraussMaffei Group, a Germany based manufacturer of plastic and rubber processing equipment, for USD1 billion. This deal would be the largest investment by a Chinese organization in Germany. Previously, the largest investment from a Chinese company in Germany was the acquisition of Putzmeister Holding by Sany Heavy Industry Co. for USD694 million in 2012. The investors which are involved in this deal include Chinese state fund Guoxin International Investment Corp and AGIC Capital, a private equity firm.  KraussMaffei Group is currently owned by Onex Corp., a private equity firm based in Canada. The Group has been developing new material technology, including carbon fibers. This deal comes a year after ChemChina agreed to buy out Pirelli & C. SpA, the global tyre manufacturer based in Italy, for a sum worth USD7.7 billion deal. The consecutive acquisitions apropos rubber and plastic industry is a part of ChemChina’s objective to expand the business operations globally.

According to TechSci Research, “The investment from China National Chemical Corp. and other private equity firms is expected to aid the growth of the Chinese industry. The Chinese industry is advancing towards manufacturing of products using state of the art technology, to serve the international demand in addition to domestic demand.”

According to the recent report published by TechSci Research, India Engineering Plastics Market Forecast & Opportunities, 2020, the engineering plastics market is projected to grow at a robust pace with a CAGR of more than 13% during 2015-2020. The demand for engineering plastics in the country is fueled by the growing adoption of lightweight technology and increasing use as a replacement for conventional engineering materials, such as metals.

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