China Rubber Industry News

Online, August 2, 2011 (Newswire.com) - According to statistics from the China Rubber Industry Association, the association's 266 major member companies recorded combined industrial output value of RMB34.4 billion (approx $5US billion) in the first quarter of 2009, a year-on-year decline of 13.6 percent. These companies' total profits decreased 26.1 percent to RMB969 million (approx $142US million).The $245US million in profit from rubber exports in the first five months of this year is 49 per cent lower than the same period last year, according to the Vietnam Rubber Association.

Ouken rubber, a global player in the fields of chemicals, plastics and rubber, yesterday announced that it has reached an agreement with Jiangsu Polyols Chemical Co to acquire 100% equity interest of the latter. specialized in rubber gasket,rubber bellow,and rubber washer, The deal is expected to be completed in the third quarter of this year.

However, other details on the acquisition were not disclosed. The acquisition is in line with Lanxess's strategy to grow in emerging markets, such as Brazil, Russia, India and China, which contribute around 16% to the company's global sales. Martin Kraemer, chief executive of Lanxess Greater China, said the company did not rule out possibilities of more acquisitions in China, but they are unlikely to be big transactions. Lanxess' sales in China reached EUR 500 million in 2008, representing a year-on-year growth of 15%. Jiangsu Polyols Chemical's sales revenue was about RMB 100 million in 2008 with around 170 employees. It mainly produces trimethylolpropane for lubricants, paints and coatings.

It announced that it has priced its offering of $1 billion aggregate principal amount of 7-year senior notes. The notes will be senior unsecured obligations of the company. They will be sold at 95.846% of the principal amount and will bear interest at a rate of 10.5%. Goodyear expects the offering to close on May 11, 2009, subject to customary closing conditions (see also The Goodyear Tire & Rubber Company).