Croda Invests Further in China

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Croda International on Monday said it received Chinese regulatory approval to acquire a 65 percent equity interest in specialty derivatives maker Sichuan Sipo Chemical for 38.2 million (U.S. $58.6 million).

Croda will acquire the majority stake from Sichuan Forever Holding Co. Ltd., which will be a minority owner of Sipo, with a 35 percent share.

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Established in 1993 and based in Mianyang City, Sichuan Province, Sipo makes derivatives from natural raw materials such as vegetable oil. Its products include primary amides, fatty acids and specialty esters, which are used in lubricants, lubricant additives, lubricant base stocks and greases and as emulsifiers for metalworking fluids.

In its announcement, East Yorkshire, U.K.-based Croda said that Sipos well invested production facility, custom built in Mianyang City in 2011, will provide additional capacity and increase Crodas proximity to customers in the region, strengthening its existing operations across China and the Croda Groups overall position in Asia.

We will have a stronger platform in niche markets and renewable technologies, which will allow us to develop our customer base and drive sales growth in Asia, said Steve Foots, chief executive of Croda. Our broader footprint in China will also enable us to be more responsive to customer needs in this important region.

Formed in 2006, Croda Greater China has locations in Shanghai, Shenzhen, Beijing and Guangzhou.

According to LubesnGreases 2012 Nonconventional Base Stocks Guide, Croda currently has esters plants in Malaysia (Port Klang), the Netherlands (Gouda), the United Kingdom (Leek) and the United States (New Castle, Del., and Paterson, N.J.).

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