Huafon acquires the bio-based business of DuPont in the United States

On June 1, 2022, Beijing time, Huafon Group's acquisition of the bio-based product-related business and technology spun off from DuPont in the United States officially completed the delivery. This is Huafon Group's largest overseas M&A transaction so far.

Behind this cross-border merger is the specific implementation of Huafon Group's "14th Five-Year Plan" strategy to accelerate industrial internationalization and product environmental protection. "Under the global industry competition, this overseas merger and acquisition is not only a strategic deployment for our company to allocate international resources, reconstruct the bio-based material industry chain and speed up the pace of international operation, but also a way for the company to enhance its own competitiveness." Huafeng Group Chairman You Feiyu said.

The assets of Huafon Group's acquisition of DuPont's business mainly include its two production bases in the United States. One is a DuPont joint venture production base located in Tennessee, USA, with two world-renowned brands, Susterra® and Zemea®. Bio-based PDO with biodegradable properties. Another production base acquired by the acquisition is DuPont’s Sorona® business core manufacturing plant in North Carolina, USA. The main product is an environmentally friendly fiber material bio-based special polyester (PTT ), such technology was first developed and commercialized by DuPont in 2000, and its application areas are mainly in the apparel and carpet industries, and other small-scale application markets also include automotive and packaging.

According to reports, the bio-based PDO and PTT products acquired this time are in a leading position among the global counterparts in terms of technology and market share. PDO is the main raw material for the production of PTT. PTT can be processed into synthetic fibers and engineering plastics. PTT is favored by industries such as clothing, carpets, electronics/electrical, automobiles, appliances and furniture due to its excellent characteristics, and its current market share continues to grow. Improvement, the future market space has broad prospects.

As one of the leading companies in the domestic new material industry, why does Huafon Group go to great lengths to choose overseas mergers and acquisitions?

"Under the 'two-carbon' goal, the main driving force for our overseas mergers and acquisitions is to build a green industrial chain, product chain and upgrade value chain, enhance the synergy of Huafon's existing industries, and accelerate the transformation and upgrading of green new technologies and industries." You Feifeng, Vice President of Huafon Group and Chairman of the Board of Covation Biomaterials (a new company established after the acquisition), said that Huafon Industries is currently in the process of going abroad. Strategically, the target products of this acquisition are all Originating from bio-based, it is not only highly compatible with our industrial strategy and product strategic orientation, but also can replace some of our existing raw materials to produce environmentally friendly polyurethane products and promote the scale of sustainable materials.

It is reported that in order to ensure the stability of operations after the acquisition, Huafon Group has retained the management and technical core team of the acquired company as well as the business, R&D and production bases in the United States. Huafon 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 to the company.