DIC Acquires Chinese Resins Manufacturer Guangdong TOD New Material Co., Ltd.
05 July 2022: DIC Corporation has announced that on 1st July, its wholly owned subsidiary DIC (China) Co., Ltd. wholly acquired Chinese coating resins manufacturer Guangdong TOD New Material Co., Ltd. (also known as, Guandong Frontier New Materials Co., Ltd.) (TODNM) headquartered in Guangdong Province, China.
This acquisition supports ongoing DIC Corporation efforts to expand its Asian market coating resins capacity, focused particularly on China – the world’s largest coating resins market. In China, DIC operates two coating resins manufacturing centers – in Zhongshan and Zhangjiagang to meet local market demand. However, both DIC manufacturing centers are operating near full production capacity with little room for greater expansion.
Thus, DIC decided to explore acquiring a local producer with a customer base in China as the most effective means to quickly expand its business in China. After screening several candidates, DIC reached out to TODNM as the most strategically aligned candidate for DIC polymer business, signing a share transfer agreement.
TODNM is widely trusted in the Chinese paint industry with the TOD/Tong de brand which has a wide range of sales network to Chinese customers. The company also has the capability to produce water-based resins and other products in order to respond strict Chinese environmental regulations, as well as applied technology and large-scale production facilities. Other than these elements, the company has high reputation from many customers and thanks to these elements, has been realized sustainable growth for many years.
- Expand TODNM’s production capacity to 2 times compared with current capacity by the end of 2023
- Provide excellent customer solution by combining TODNM’s production capacity, sales network and applied technology with DIC’s resin synthesis technology
- Integrate TODNM’s water-based resin products that quickly responded to environmental regulations in China into DIC’s product portfolio and expand these products globally in Japan, China, ASEAN, India, Europe and the United States, where DIC operates
