Japanese specialty lubricant producer Moresco Corp said this week that it will buy out its partner in a specialty lube joint venture in Wuxi, China, becoming sole owner of Wuxi MoreTex Technology.
Moresco currently owns 50% of the joint venture, and Taiwanese Tex Year Industries Inc. owns the remainder.
China’s government asked Wuxi MoreTex Technology to move from its current location because of land redevelopment plans for urbanization and commercialization. At the same time, Moresco will move its specialty lubricants production in Shanghai to its new plant managed by Moresco (Zhejiang) Functional Material Co Ltd. The plant is under construction in Haining City, Zhejiang Province, Eastern China and expected to be completed in November.
“Under these circumstances and as part of the restructuring of business, Moresco decided to purchase the remaining stake of Wuxi Moretex Technology,” the company said in the announcement.
The price of the acquisition is ¥453 million (U.S. $3 million), and the transaction is expected to close in October.
Wuxi MoreTex Technology was set up in 2001. Tex Year Industries is listed on the Taiwan stock exchange and is a producer of hot melt adhesives and specialty chemicals. Moresco (Zhejiang) Functional Material was set up in February to consolidate its lubricant plants in Shanghai and Wuxi. Moresco has two plants in China, one in Shanghai and one in Wuxi, producing specialty lubricants such as die casting lubricants, metal working oil and others. Its other lubricant plants in Asia include one in Thailand, one in India and one in Indonesia.