Speciality chemicals producer, Croda International (Goole / UK; www.croda.com), has received Chinese regulatory approval to acquire a 65% stake in Sichuan Sipo Chemical Company (Sipo, Mianyang City / China; www.sipo.com.cn/ch/en/). Completion of the deal is expected within the next few weeks, subject to the usual conditions.

Based in the Sichuan province, Sipo employs about 300 people in the manufacture of specialty derivatives from natural raw materials including primary amides, novel fatty acids and speciality esters. A state-of-the-art production facility was built in 2011 which Croda said will increase its proximity to customers, and strengthen its existing operations across China as well as its overall position in Asia.

Croda said its initial focus is to grow sales into the polymer additives and lubricants sectors.
Steve Foots, Croda’s chief executive, said: “This is a significant step forward in our strategy to increase Croda's presence in fast growing and emerging markets. We will have a stronger platform in niche markets and renewable technologies which will allow us to develop our customer base and drive sales growth in Asia.”