Hot on the heels of an acquisition in India, Japanese materials supplier Mitsubishi Chemical Corp. (MCC) has announced plans to buy Indonesian PVC compound producer, PT. ABC Plastindo.
In a 9 July statement, MCC said it expected to complete the acquisition of the Tanggerang, Indonesia-based business in August later this year.
The PVC compounder supplies products for various applications including automotive components, electronic cables, buildings and electrical appliances.
The terms of the transaction were not disclosed.
MCC has stepped up M&A activities in its performance polymer business in recent months, with as aim to expand in all global markets.
The company has thermoplastic elastomer and PVC compound production sites in Thailand, operating its business mainly for automotive application.
With the acquisition of Plastindo, MCC expects to accelerate its business expansion into the automotive and electronic cable segments in the growing ASEAN region.
In late June, MCC announced the acquisition of the PVC compound business of Welset Plast Extrusions Pvt. Ltd, a Mumbai, India-based plastics specialist.
The acquisition, expected to be completed in the fourth quarter of this year, is aimed at increasing MCC’s footprint in the ASEAN medical market.
The Japanese supplier is already active in the Indian market, manufacturing and supplying thermoplastic elastomers in India.
The company also indicated that it is also expanding its TPE business for automotive applications in India, focusing mainly on materials for airbag covers.
In April, MCC established a regional management company in Singapore, as part of a strategy to expand its performance polymers business in the “fast-growing” ASEAN and Indian markets.
The Tokyo-based materials supplier said it would look to improve the business, which involves the production and sale of thermoplastic elastomers, PVC compounds, and performance polyolefins.