At the beginning of November 2004, Essen, Germany-based Rtgers AG, a wholly owned subsidiary of energy and chemicals group RAG Aktiengesellschaft, and German Kuraray Specialities Europe GmbH (KSE, for…
At the beginning of November 2004, Essen, Germany-based Rtgers AG, a wholly owned subsidiary of energy and chemicals group RAG Aktiengesellschaft, and German Kuraray Specialities Europe GmbH (KSE, formerly Clariant), owned by the internationally active and listed Kuraray Co. Ltd., signed an agreement for the sale of the Trosifol activities of HT Troplast AG, of Troisdorf, Germany. The purchase price has not been disclosed. The sale is subject to approval by the relevant regulatory authorities and will probably be finalized at the end of 2004. KSE is the world“s leading producer of polyvinyl alcohols, used to make polyvinyl butyl resins, which in turn are used in Trosifol PVB film. KSE has enjoyed good relations with Trosifol for decades as a supplier of this resin. The Kuraray Group has a workforce of about 7,000 worldwide, mainly at production locations in Japan, Singapore and Europe. In 2003, the Kuraray Group achieved total sales of about USD 3.1 billion. By tightening its network of research and development within this new, extended value-added chain from the raw material to the end product, Kuraray anticipates major synergies in the optimization of existing products and the development of new ones. Even more important, however, is the strengthening of its market presence in the European market. In its global strategy, Kuraray aims to expand its foreign business outside Japan, with its main activities being concentrated on the target markets of Europe, the US and Asia. KSE“s production capacity of polyvinyl alcohol at its Frankfurt site is being increased by a further 20,000 tons in the coming year from its current level of 50,000 metric tons. For this reason, it is being stressed, particularly with the Trosifol workforce in Troisdorf in mind, that the emphasis after the acquisition will not be on restructuring. In fact, the existing Trosifol sites, and particularly production in Troisdorf and Nizhny Novgorod, Russia, will be strengthened and expanded. There is also a commitment to the further training of young people. Dr. Gerd Lepper, President of Kuraray Specialities Europe GmbH, comments: “HT Troplast AG“s Trosifol business is an outstanding investment for us, enabling us to extend our value-added chain. We want to expand this business in the medium term, and the good, longstanding relations between our companies (KSE and Trosifol) will be very useful in this.” For President Yasuaki Wakui of Group Management in Japan, the Trosifol acquisition is another step towards globalization and the strategic reinforcement of activities in Europe. Karl-Heinz Spiess, Trosifol Product Manager, is also optimistic: “With its commitment to long-term growth, the Kuraray Group is supporting our efforts in the marketplace. Trosifol clearly belongs to the Group“s core business.”