ATLANTA, Jan. 22, 2008 – Huber Engineered Materials (HEM), part of J.M. Huber Corporation, accelerated its plans to enter China by announcing today it has closed an agreement to purchase the production-related assets of a Chinese manufacturer of various grades of precipitated silica. HEM reached the agreement with Changzhou City Mingfan Fine Chemical Co., Ltd. (Mingfan), which serves the rapidly growing oral care industry in China.
Mingfan is a leading manufacturer in China of dental silicas and will continue to produce its existing dental abrasive line of products for Huber under a Tolling Agreement. The transaction provides HEM with production capabilities in one of the world’s largest markets and enables the company to offer local silica manufacturing for its customers throughout Asia.
“This is an exciting time for our silica business,” said Mike Marberry, president of HEM. “With the building of our new production facility underway in Qingdao, China, and our existing plant in Jhagadia, India, this agreement with Mingfan establishes Huber as a major player in silica in Asia. This acquisition also allows us to leverage the production and technological expertise of Mingfan to gain a better understanding of the local market as we accelerate our presence in that region.”
Huber announced in March 2007 it was building a new dental silica operation in China that is expected to output 40,000 metric tons of precipitated silica. A groundbreaking ceremony for the plant in Qingdao was held in December and production is scheduled to begin in second quarter 2009.
“The demand in China for precipitated silica continues to grow at a significant rate,” said Jorma Sakko, Vice President and General Manager of Huber’s silica business unit. “This agreement allows Huber to establish ourselves more quickly as a local producer to the Chinese market.”
Huber has operated silica plants for over five decades and currently has seven manufacturing plants with four supporting the Chinese and broader Asian markets.
“The influence of the Chinese economy continues to grow,” said Hyung Hahn, president of Huber China. “This asset purchase agreement is another step in a series of moves by J. M. Huber Corporation to become the leader in its key markets worldwide while reaffirming our commitment to growth in China.”
Huber produces value-added precipitated silica and silicate products and provides technical expertise for a variety of end-use applications including cleaning and whitening in toothpaste; improving friction/printability in paper; optics in paint; anti-caking in food; freeflow in polymer powders; and as carriers, defoamers and rubber reinforcements.
