Quaker Chemical Corp. on Nov. 9 announced it has acquired the 40 percent equity interest of Chinese joint venture partner Wuxi Gao Ren Jie Chemical Co. for an undisclosed amount. Quaker Chemical said the acquisition is part of its Asian expansion strategy.
Quaker Chemical formed the joint venture in 1995 to produce and market its products in China. The company expects the transaction to be immediately accretive to earnings.
Quaker Chemical also announced that it will expand its manufacturing and research and development presence, and consolidate its regional headquarters into a new facility in Qingpu, Shanghai, which should be fully operational early next year. The new integrated facility will allow the company to expand the range of locally produced products, enable better utilization of local raw material sources, and allow for greater functional integration to more flexibly and quickly serve its customers. The facility will also enable further expansion of Quaker Chemicals research and development capabilities to support growth both in Asia and around the globe.
Ronald J. Naples, chairman and chief executive officer, said, “This joint venture has been a great success in a strategic and emerging market, profitable from day one. We have had a committed partner, but now by acquiring our partner’s interest, we will be able to fully integrate the joint venture’s manufacturing and commercial operations into our overall Chinese organization in full alignment with our global strategies. This transaction is directly connected to our strategic goal of becoming a single worldwide company delivering everywhere the best from anywhere.”
Conshohocken, Pa.-based Quaker Chemical is a worldwide developer, producer, and marketer of custom-formulated chemical specialty products and a provider of chemical management services for manufacturers around the globe, primarily in the steel and automotive industries.