The acquisition would help Sika expand its share in the Sealing & Bonding market of China.
Sika AG, a Swiss chemical company, has recently signed an agreement to acquire Crevo-Hengxin, a Chinese firm that produces adhesives and silicone sealants that are used in construction applications and the automobile industry.
According to reliable sources, Sika is planning to expand its Sealing & Bonding presence and Target Markets Industry in China and the Asia-Pacific, and is attaining additional production footprint and silicone technology.
Reportedly, Crevo-Hengxin is a family-owned firm that produces a wide range of silicone products used for fenestration, facades, interior finishing, insulated glass and various other bonding and sealing applications. Additionally, the firm is a leading producer of silicone for the ever-booming solar industry.
Sources cite that the firm, which is situated in Changshu, 50 km north of Suzhou, has various operations including a state-of-the-art R&D Center, a production facility, offices and a warehouse.
Speaking on the move, Mike Campion, Regional Manager Asia/Pacific, Sika, said that the market for adhesive and the silicone sealants looks promising, especially in China. Moreover, with the purchase of Crevo-Hengxin, their firm will witness an increase in its know-how about this key technology and will expand its local production resources, claims Campion.
He further added that the company can quickly leverage the commercial potential of the new product lines by developing the cross-selling synergies provided by their firm’s extended distribution network. Furthermore, Sika anticipates a successful joint future and extends a warm welcome to all Crevo-Hengxin employees who have joined their team.
For the uninitiated, Sika is a specialty chemical company that is renowned for producing and developing systems and products for sealing, bonding, reinforcing, protecting and damping in the motor vehicle industry and the building sector. With subsidiaries in over 101 countries around the globe, the company manages to manufacture its product in over 300 industries.
Source Credit: https://finance.yahoo.com/news/sika-acquires-manufacturer-silicone-sealants-050000850.html