Official announcement!

On July 1, DIC (China) Co.
, Ltd.
, a wholly-owned subsidiary of DIC Co.
, Ltd.
, announced that it has acquired Guangdong TOD New Material Co.
, Ltd.
(Chinese company name Guangdong TOD New Material Co.
, Ltd.
) Not disclosed
.

The need for acquisitions

In order to expand its business in the coating resin market in Asia, DIC has paid special attention to China, the world's largest demand destination, which is expected to maintain rapid growth in the future
.
At present, DIC produces coating resins in two production bases in Zhongshan and Zhangjiagang, China, and sells them locally, but in terms of production capacity, these two bases are in a state of full production, and there is no room for expansion
.

Acquisition of Guangdong Tongde target

In this case, DIC's acquisition of a local manufacturer with a Chinese customer base is the most effective way to achieve its goal of expanding its business in China (and has been seeking access)
.
Before this acquisition, DIC has set up the head of the coating resin business in China since January 2021.
In order to expand its business in the Asian market, it has promoted the construction of its organizational structure and sales management system.
Smooth operation is guaranteed
.
Going forward, the two companies will rapidly integrate their corporate cultures to achieve the following goals by leveraging their respective strengths
.

Expand the production capacity of Guangdong Tongde Company and double the current production capacity by the end of 2023;

On the basis of the existing Guangdong Tongde production capacity, sales channels and application technology capabilities, the synthesis technology of DIC resin is integrated to provide customers with higher added value of products;

Guangdong Tongde has rapidly developed corresponding water-based resin products in accordance with China's environmental protection regulations into the company's product group, and has carried out global promotion in DIC Japan, China, ASEAN, India, Europe and the United States and other business operation bases
.

In the medium to long term, combined with the expansion of the Ideal production base in India announced in May 2022, DIC will establish a dominant position in coating resins in Asia and provide resin products that reduce environmental load (environmentally friendly) and impart new functions in Asia , and strive to achieve the target of 5% market share in the region by 2030
.

Guangdong Tongde New Materials Co.
, Ltd.
was established in 2013 and is located in Wengyuan County, Shaoguan City, Guangdong Province
.
The first phase of the project was fully put into production in May 2017, with an annual production capacity of 100,000 tons
.
In 2021, the construction of the second-phase production line has begun, with an annual reserve capacity of 100,000 tons of water-based resin
.

The main products are: acrylic resin, alkyd resin, polyester resin, polyurethane resin, epoxy resin, etc.
(solvent-based and water-based)