Aekyung expands global presence with VPCHEM acquisition

[Courtesy of Aekyung Chemical]

South Korea’s Aekyung Chemical Co. has acquired VINA Plasticizers Chemical Company Limited (VPCHEM), a manufacturer of plasticizers and LG Chem Ltd.’s Vietnamese subsidiary, the company announced on Friday.

Aekyung Chemical acquired the 50 percent stake in VPCHEM previously held by LG Chem, thereby securing a production base in Vietnam.

Plasticizers are additives that facilitate the molding and processing of plastics, including polyvinyl chloride (PVC), and are commonly used in products such as wallpaper, flooring, and wires. The Vietnamese domestic plasticizer market is expected to grow at an annual rate of 3.7 percent, driven by the extended use of plasticizers in line with industrial advancement and improved income levels in the region.

With the acquisition of VPCHEM, the only facility in Vietnam with the capability to manufacture plasticizers, Aekyung Chemical has increased its annual production capacity to 660,000 tons. The company’s annual production capacity is currently, 550,000 tons, with 400,000 tons in Korea and 150,000 tons in China.

The move also allows the company to strategically focus on producing and supplying environmentally friendly plasticizers for North America and Europe, as well as general-purpose and functional plasticizers for China and Vietnam, the company explained.

“The acquisition of VPCHEM shares will help us solidify the foundation for the advancement of our core plasticizer business,” Chief Executive Officer Pyo Kyoung-won said, expressing the company’s goal to maximize the synergy between global production bases as well as upgrade the company’s plasticizer business.