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Chemicals / Materials

 


How we see chemical investments (incl. acquisitions) in the space

As one of China's cornerstone industries, the chemicals industry accounts for approximately 10% of China's GDP, and nearly 30% of the global chemicals sector. The next decade of China's chemical industry will gradually shift from quantity-driven growth to more quality-driven growth, fuelled by demand trade-up, sophistication and consolidation in this highly fragmented market. Both acquisitions and Greenfield investments take critical roles in this space, helping the chemical players gain market access into new segments or portfolios, secure access to feedstock, and at times implement a Brand B strategy. Outbound investments are still at an emerging stage, usually focusing on seeking access to advanced technology or application know-how.

Our qualifications in the space

InterChina has a specialist Chemicals / Materials Group dedicated to transactions in this space. The group has been active for nearly 20 years, and with its transaction record and relationship network, we have established strong credibility with both international and Chinese players. Our clients range from Fortune 1,000 players to specialized medium-size chemical companies. The projects we have conducted for these clients range from complex acquisition advisory and technology transfer advisory to WFOE / JV establishment. We also work on restructuring and sell-side advisory, as well as outbound buy-side mandates. Our breadth of experience spans petrochemicals, specialty chemicals, various chemicals used in various downstream sectors, inorganic ones and chemical distribution, among many others. In addition, our sector focus also covers the energy and cleantech markets in China. In a typical year, our sector group accounts for a fourth of InterChina's engagements.

Why our capabilities are relevant in the space

Our specialization in this sector allows us to engage with clients at a strategic level, bringing a contextual understanding to complex and shifting transaction issues, and advising on investment / acquisition strategy and options. Our network with foreign and Chinese companies including the Big Three accumulated in the past 20 years have put us in a unique position to initiate and manage constructive conversations with the right target. In the case of acquisitions, our dealmakers prove invaluable in managing processes where both international corporates and local entrepreneurs are involved; being able to speak the language of both sides. In Greenfield JV cases, our dealmakers provide indispensable coordination in sophisticated partner screening, complex multi-stakeholder negotiation processes, and government lobbying for projects typically at the billion RMB level.

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A summary of typical clients provided below.

Typical Clients

Specialty Chemical Manufacturers

  • Performance Polymers
  • Thermoplastics
  • Adhesives, Glues & Resins
  • Paints, Lacquers, Coatings & Sealants
  • Polyurethane (Foam & CASE)
  • Technical Films & Specialty Fibers
  • Surfactant Chemicals
  • Fluorochemicals
  • Catalysts
  • Pest Control & Crop Protection

Chemicals In Various Downstream Sectors

  • Electronic
  • Cleaning & Sanitary
  • Construction
  • Fibers & Textile
  • Water Treatment
  • Oil & Gas
  • Consumption
  • Lab

Inorganic Chemicals Manufacturers

  • Carbon & Carbon Black
  • Silicon & Polysilicon
  • Industry Gas
  • Chlorine Chemicals

Petrochemical Companies

  • Oil Products (Lube, Asphalt)
  • Advanced Intermediaries
  • Standard Polymer
  • Plastics, Rubber & Rubber Products
  • Synthetic Fibers

Chemical Distributors

  • National
  • Regional
  • Sector-focused Niche

Oil & Gas Suppliers

  • Natural Gas
  • Oil

Energy & Power Companies

  • Clean Energy Generation (Gas, Wind, Solar, Biomass, Hydro, Nuclear)
  • Wind Turbines & Components
  • Photovoltaic (PV) Cell, Modular & Wafer
  • Various Components (e.g. Inverter)
  • Power Distribution Equipment
  • Power Transmission Equipment
  • Uninterrupted Power Supply
  • Utility Meters

Materials Manufacturers

  • Paper & Package
  • Metal & Metal Products
  • Explosives
  • Ferro Alloy
  • Building Materials

Water Treatment Companies

  • Water & Waste Water EPC
  • Fluid Equipment
  • Measurement Equipment
  • Water Treatment Services