Ube Europe Acquires Repol S.L.
Market Expertz | April 11, 2019
Ube Corporation Europe, the European subsidiary of Japanese Ube Industries Ltd, has acquired a majority stake in the compound manufacturer Repol S.L. and has signed an agreement to execute the transfer of shares. It operates a plant in Almazora, Castellón Province with over 60 employees. Under the agreement, Ube acquired the shares in the Spanish company near the end of March 2019. The Ube Group has placed the polyamide industry as an active growth sector and is currently consolidating its position for extrusion applications, where the company has a competitive advantage. Simultaneously, Ube is also working towards expanding the applications of its injection moldings.
Repol is engaged in the production of engineering plastic compounds in the European market that uses nylon 6, nylon 66, polyacetal, polypropylene, polycarbonate, and other resin raw materials. These products are primarily useful in automotive components but are also broadly applied in electronic and electrical industries. The organization’s brands include Dinalon PA, Dinanax PC, Dinaplen PP, and Dinatron PPS. The acquisition gives way to a complementary relationship in the nylon business. It gives Ube Industries access to Repol’s compound technologies and product development abilities for non-polyamide resins. Furthermore, Repol’s recycling processes are speculated to be an integral part of the prospective growth of the business among the increasing stringency of the environmental regulations concerning plastic packaging materials.
Ube Corporation Europe already owns a compound plant and the acquisition gives Ube Industries an additional site of operations in the region of Europe that is a leading global company for its use of plastics in the weight reduction of automobiles. It also has existing manufacturing bases located in Japan and Thailand. This will expedite the development of the company’s compound business for applications in injection moldings, automotive and other sectors, not just in the European but also in the Asian market.