Daelim Industrial announced on Oct. 31 that it will expand its high value-added petrochemical business through an overseas M&A deal worth US$530 million.
Daelim Industrial’s board of directors approved on Oct. 30 the company’s plan to acquire the Cariflex Business Division from Kraton Corp. of the United States. Daelim plans to complete the acquisition of the division in the first quarter of next year at the earliest and secure Kraton’s Brazilian plant, fundamental technology, sales force and goodwill.
When the deal is completed, Daelim will secure the No. 1 position in the global markets for synthetic rubber surgical gloves and other products.
The deal marks Daelim's first acquisition of an overseas company in its 80 years of business. The company is expanding its high value-added petrochemical business and seeking to grow into a major petrochemicals developer. Daelim is actively promoting petrochemical development projects in the United States and Saudi Arabia.
The Cariflex Business Division produces high-value-added synthetic rubber and latex. These products are used for medical materials such as surgical gloves and rubber stoppers for injectors. Surgical gloves have been made of natural rubber but due to natural rubber’s allergy risk, synthetic rubber is used instead.
Latex produced by the Cariflex Business Division is the number one product in the global synthetic rubber surgical glove market, which is expected to grow 8 percent annually.