Westlake Chemical was founded by Ting Tsung Chao in the year 1986, and is an international producer and seller of polymers, petrochemicals, and similar fabricated products. Westlake Chemicals produces the maximum amount of low-density polyethylene in the US region and is present in the Forbes Global 2000 list.
The merger is set to help in research and development of better products and improve the existing product range of Westlake Chemicals. Currently the company is a leading producer of Olefins, Vinyls, Polythene and similar products. The merger will open growth avenues for Westlake by providing it better infrastructure for research and development.
Recently, Westlake chemicals successfully acquired NAKAN. NAKAN is a global leader in production of TPE, PVC, and TPO compounds for selected markets like Healthcare, Automotive Industry, Consumer Goods, Building and Construction and Packaging. NAKAN has a wide range of products which are rigid and of flexible grades that are rigid and flexible and ideally used for extrusion, pressing and roto-molding, injection and a full set of opportunities for manufacturers and users to meet the demands of applications.
The merger deal was announced in September 2018 and is expected to value at USD 265-million. This merger would give Westlake eight production facilities based in Italy, China, Japan, France, Mexico, Germany, Spain and Vietnam region. Along with these a research facility in France and an application laboratory in the United States.
This merger was initiated with an aim to ensure that NAKAN could start consulting with French works council, before getting into a negotiated and mutually beneficial to all. Albert Chao, Westlake’s president and CEO, has said “the merger would be an excellent strategic fit and will help in expansion of compounding business globally and at the same time add current special products and technology to the existing portfolio.
Post discussion of policies and meeting all the set standards it has now been possible for the merger to successfully come to closure.