The latest scoop to grab headlines in plastic compounding market is that of the recent acquisition between Dow Chemical’s PVDC (polyvinylidene chloride) resin business by SK Global Chemical. Although neither of the concerned parties has disclosed anything about the financial transactions for the deal, it is expected to reach over USD 75 million, as per some of the reliable sources.
Reportedly, the latest move is along the heels of Dow’s long-term plan of streamlining its portfolio in plastic compounding industry. The acquisition represents Dow Chemical’s second transaction with SK Global Chemical amidst back-to-back agreements this year. For the record, somewhat toward the first quarter of 2017, the South Korean enterprise had purchased Dow’s ethylene acrylic acid copolymers & ionomers business for a total consideration of USD 370 million. Sources claim that the divestment was in association with the collaboration between DuPont and Dow Chemical back then.
For the uninitiated, PVDC nowadays, has been increasingly deployed in manufacturing clear film packaging solutions including plastic food wrappers to block any seepage of oxygen and water. Following the latest procurement, SK Global Chemical would now obtain full control of Dow’s patent PVDC trademark, Saran, and other intellectual assets as well as Michigan-based manufacturing facilities, cite sources. Saran is extensively deployed across diversified packaging applications including the rigid and flexible multilayer extrusion, monolayer extrusion, and other extrusion coating applications. Experts believe that with the purchase of Saran PVDC vertical from Dow Chemical, SK Global Chemical will now plan to reinforce its product line up in plastic compounding market, with a strong customer base and a new ownership structure.
While Dow Chemical has sold its Saran resin business to South Korea’s SK Innovation, the Saran Wrap brand name is under the canopy of S.C. Johnson & Son, the renowned U.S. based household cleaning manufacturer.