ULSAN, South Korea (Nov. 3, 2010)—Songwon Industrial Co., Ltd. and HPL Additives Ltd. have agreed to form a joint venture, which will be called Songwon HPL Additives Pvt. Ltd.
As part of the deal, HPL will transfer all its business and assets related to its Polymer Stabilizers unit to Songwon HPL, which will be owned 40 percent by HPL and 60 percent by Songwon.
The parties expect the new company to be operational by the second quarter of 2011.
Jongho Park, chairman and CEO of Songwon Group, said the venture will allow the integration of HPL's existing product range to Songwon's and leveraging Songwon's global network for sales, technical support, logistic and customer service.
In addition Songwon and HPL share a common vision to establish a local presence in the Middle East, he said.
Umesh Anand, managing director of HPL said the deal will further strengthen HPL's position in India, while allowing the company to remain committed to growing and developing its other core businesses, such as blowing agents and other specialty chemicals.