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Merck buys manufacturer of effect pigments in China
10 Sep '09
2 min read
Merck KGaA announced that it has acquired Suzhou Taizhu Technology Development Co. Ltd. ("Taizhu"), a leading supplier of effect pigments located in Taicang near Shanghai, China. With total revenues of more than € 14 million in 2008 and 300 employees Taizhu is one of the biggest effect pigments companies in the Chinese market. The acquisition is of high strategic importance to the Merck pigments business.
Within the scope of this transaction, Merck has acquired the production site of Taizhu in Taicang, 40 km from Shanghai, as well as the entire sales and marketing organization in China and abroad for a total consideration of € 28 million.
Klaus Bischoff, Head of the Performance & Life Science Chemicals division at Merck, commented: "The transaction is highly attractive for Merck because Taizhu's products complement our premium product portfolio with a range that mainly serves the growing value-for-money market segment. In addition, Taizhu's customer base ideally complements our own. In recent years, Taizhu has built an outstanding reputation as a reliable source of high-quality effect pigments."
China is one of the world's fastest growing markets and is forecasted to become the second biggest effect pigment market by 2010, second only to the United States. Merck's Chemicals business subsidiary has been operating in Shanghai since 1997.
Suzhou Taizhu Technology Development Co. Ltd. was founded as one of China's first private companies in 1988. With total revenues of more than € 14 million and its 300 employees, Taizhu ranks among the world's largest manufacturers of effect pigments.
Merck is one of the world's leading suppliers of effect pigments for the coatings, plastics, printing, cosmetic, food and pharmaceutical industries. Effect pigments underscore the emotional impact of color and are an important design element when creating surfaces with special impressions or qualities. Application possibilities range from cars to packaging and high-tech products to building facades. In addition to decorative effect pigments, Merck offers pigments that have functional applications such as heat-reflecting or anti-counterfeiting.
Within the scope of this transaction, Merck has acquired the production site of Taizhu in Taicang, 40 km from Shanghai, as well as the entire sales and marketing organization in China and abroad for a total consideration of € 28 million.
Klaus Bischoff, Head of the Performance & Life Science Chemicals division at Merck, commented: "The transaction is highly attractive for Merck because Taizhu's products complement our premium product portfolio with a range that mainly serves the growing value-for-money market segment. In addition, Taizhu's customer base ideally complements our own. In recent years, Taizhu has built an outstanding reputation as a reliable source of high-quality effect pigments."
China is one of the world's fastest growing markets and is forecasted to become the second biggest effect pigment market by 2010, second only to the United States. Merck's Chemicals business subsidiary has been operating in Shanghai since 1997.
Suzhou Taizhu Technology Development Co. Ltd. was founded as one of China's first private companies in 1988. With total revenues of more than € 14 million and its 300 employees, Taizhu ranks among the world's largest manufacturers of effect pigments.
Merck is one of the world's leading suppliers of effect pigments for the coatings, plastics, printing, cosmetic, food and pharmaceutical industries. Effect pigments underscore the emotional impact of color and are an important design element when creating surfaces with special impressions or qualities. Application possibilities range from cars to packaging and high-tech products to building facades. In addition to decorative effect pigments, Merck offers pigments that have functional applications such as heat-reflecting or anti-counterfeiting.
Merck KGaA
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