Huafeng Group'S Acquisition Of Dupont'S Bio Based Business Completed Delivery

On June 1, 2022, Beijing time, Huafeng Group completed the delivery of business and technology related to the acquisition of bio based products divested from DuPont of the United States. This is by far the largest overseas M & a deal of Huafeng Group.

Behind the cross-border merger and acquisition is the specific implementation of Huafeng Group's strategy of accelerating industrial internationalization and product environmental protection during the 14th Five Year Plan period. "Under the global industrial competition, this overseas M & A is not only a strategic deployment for our enterprises to allocate international resources, reconstruct the bio based materials industrial chain and accelerate the pace of international operation, but also a way for enterprises to enhance their competitiveness." Hua Feng Group Chairman you Feiyu said.

Sorona production base in North Carolina, USA

The acquisition of DuPont's assets by Huafeng Group mainly includes its two production bases in the United States. One is a DuPont joint venture production base in Tennessee, which owns sustera ® Zemea and ® Two world famous brands, whose main business is R & D, production and sales of bio based PDO which can produce high performance polyester plastics and make them have biodegradable characteristics easy to natural circulation. Another production base acquired is DuPont's Sorona, North Carolina ® Business core manufacturing plant, the main products are Sorona ® Bio based special polyester (PTT), an environmental friendly fiber material, is sold by the brand. This technology was first developed and commercialized by DuPont in 2000. Its application fields are mainly clothing and carpet industry, and other small-scale application markets include automobiles and packaging.

PDO production base in Tennessee, USA

According to reports, the acquisition of bio based PDO and PTT products, whether in technology or market share, are in a leading position in the global peers. PDO is the main raw material for the production of PTT. PTT can be synthesized into fibers and engineering plastics after processing. With its excellent characteristics, PTT is favored by clothing, carpet, electronic / electrical, automobile, appliance, furniture and other industries. At present, the market share is increasing, and the future market prospect is broad.

As one of the leading enterprises in the domestic new material industry, why should Huafeng Group make every effort to choose overseas M & A?

"Under the goal of" double carbon ", the main driving force of our overseas M & A is to build a green industrial chain, product chain and value chain, enhance the synergy ability of Huafeng's existing industries, and accelerate the transformation and upgrading of green new technologies and industries." You feifeng, vice president of Huafeng Group and chairman of the board of directors of covation biomaterials (a new company established after the acquisition), said that at present, Huafeng industry is in the process of going abroad. Strategically, the target products of this acquisition are all derived from biological base, which is not only highly consistent with our industrial strategy and product strategy orientation, It can also replace some of our existing raw materials to produce environmentally friendly polyurethane products and promote the scale-up of sustainable materials.

It is reported that in order to ensure the stable operation after the acquisition, Huafeng Group has retained the management and technical core team of the acquired company as well as the business, research and development and production base in the United States. Huafeng Group hopes that the integration of a large number of international talents can bring more advanced management concepts, more professional ways of doing things and a more global vision.

"In the future, we will invest more resources, access wider value chain partners and applications, help new acquisition companies develop faster, and consolidate their position as leading suppliers of bio based materials." You Feiyu said.