SINGAPORE—With three major acquisitions in as many months, rubber supply chain manager Halcyon Agri Corp. Ltd. is set to strengthen its position as a world leader in its field.
In November, Halcyon Agri entered into an agreement to acquire the assets and entities of the Polymer Division of RCMA Group Pte. Ltd. The company completed the purchase early in January for $31.8 million.
Also in January, Halcyon Agri signed an agreement to acquire two Indonesian NR producing companies, PT Sumber Djantin and PT Sumber Alam, for $78.5 million.
Once that acquisition is completed, Halcyon Agri said, it will be the world's largest producer of Standard Indonesian Rubber 20, the grade of natural rubber commonly used by U.S. tire manufacturers.
A Halcyon Agri spokeswoman said the company would not comment further on the acquisitions pending the release of its full-year financial results at the end of February.
In completing the RCMA purchase, Halcyon Agri has established a Halcyon Rubber and Plantations business unit to be headed by Robert Meyer, Halcyon Agri executive director and CEO, the company said.
HRP includes Halcyon Agri's existing industrial distribution and latex divisions, as well as the RCMA asset, the company said.
The business unit will provide industrial-grade NR, latex and synthetic rubber to consumer product manufacturers, according to Halcyon Agri.
HRP will process the latex at Sud Cameroun Hevea S.A. and Hevea Cameroun S.A., Halcyon Agri's factories in West Africa, the company said. This will leverage Halcyon Agri's global distribution network for seamless delivery in the global specialty tire and non-tire industry, it said.
Centrotrade Holdings Pte. Ltd., one of Halcyon Agri's sales and distribution arms, gains some of the most renowned trade names in the NR industry with the RCMA purchase, according to Halcyon Agri.
These include Alan L. Grant Polymer, Corrie MacColl Rubber and Wurfbain Polymer, it said.
The acquisition also allows New Continent Enterprise Pte. Ltd., another Halcyon Agri sales and distribution arm, to better position its origination and hedging capabilities and increase distribution volume, it said.
New Continent will distribute Heveapro, Halcyon Agri's proprietary brand of sustainable rubber, to Chinese tire manufacturers, and also provide end-to-end chain services for technically specified rubber products from Halcyon Agri's factories, according to the company.
The RCMA acquisition will increase New Continent's year-to-date third-quarter 2017 financial results 25 percent to $753 million, according to Halcyon Agri. It also will increase New Continent's sales volume for the period 21 percent to 397,485 metric tons, it said.
With the acquisition of PT Sumber Djantin and PT Sumber Alam, Halcyon Agri will gain four SIR factories in Pontianak, Indonesia, with a combined annual production capacity of 132,000 metric tons, according to the company.
The purchase will give Halcyon Agri a total of 19 SIR factories in Indonesia with an annual capacity of 877,000 metric tons, it said.
Halcyon Agri owns 38 NR processing plants in most major rubber-producing regions, according to the company. It produces sustainable rubber under its proprietary Heveapro brand, and has production capacity of 1.63 million tons per year, it said.