The Chinese chemical company Jilins Chemical is acquiring a US firm to conduct its own tests on its fiber chemical products, according to two people familiar with the deal.
Jilis will also take on a majority stake in ChemTech, which makes fiber chemicals, the people said.
The move signals Jilines commitment to become a more important player in the US chemical market.
ChemTech will be Jiliners primary test lab in the United States and will be led by CEO Steve Olesen, the two people said, speaking on condition of anonymity.
ChemTec has been in talks with Jilini to explore its options for a U.S. joint venture in the past few years.
Chemtech was founded by Jilinis CEO Scott Wiedeman and a former employee.
Chemtek is a subsidiary of Jilinese Chemical Corp., which is a joint venture of JL Chemicals and ChemTek Corp. Chemtec is a publicly traded company with assets in China.
The deal is subject to regulatory approval and could be completed by the end of the year, the sources said.
ChemTechnics is an American firm, and Chemtech is a Chinese company.
Chem Tec has about 1,000 employees and a total annual revenue of $5.8 billion.
Chem Technica reported quarterly earnings that beat analysts’ estimates, or slightly less than the consensus of $3.2 billion.
In addition, ChemTech said in its latest quarterly results that it expects to raise $500 million in cash and/or stock, offset by debt.
JILIN CLAIMS IT WILL MULTIPLE TAX PAYMENTS FOR ITS COMPLIANCE With the Jilinx acquisition, Jilincans first U.N. certification under the Chemical Safety Convention for fiber chemicals will be finalized, the second will come in 2018, the company said.
Jilanin claims that its products comply with all applicable U.NS.
It says that it will provide fiber chemical testing facilities and services to U.
Ns. testing organizations, such as the Environmental Protection Agency and the Food and Drug Administration.
Chem Tech has previously stated that it has no plans to enter into a UBS or Morgan Stanley merger, which would require it to pay UBS an estimated $1 billion, the companies said in a joint statement.
Chem Tek said in the same statement that it had “no current plans to acquire another U. S. company” and that it is “actively pursuing other opportunities for growth.”
Chem Tech and Jilinfa are jointly investing $3 billion to $5 billion to establish a fiber-testing center in New York, a source familiar with that project said.
That project is expected to be completed in 2018.
Chemtechnic’s fiber chemical business is expected increase by about 20 percent this year to about $7 billion, and it is expected in 2020 to grow by about 60 percent to $14 billion, said a person familiar with its plans.
Chem tech will be part of Chemtech’s business portfolio, including other companies that produce fiber chemicals and test chemicals.
Chem tectonics is one of ChemTectonics’ main businesses, but it is not yet fully integrated with Chemtech.
Chem technic will become ChemTech’s third major business, joining other chemical testing and analysis services, according the people.
Chem TECH SAYS IT’S NOT USING ITS STRENGTH AS A REGULATOR Chemtek and ChemTechnic, which have been building their relationship over the past several years, began working together in late 2015, the last time Chemtek reported financial results.
Chem Technology will be ChemTechs first global chemical test center, and the company is already developing facilities in Shanghai and Beijing.
Chemtyntech said in April that it was moving its headquarters to Beijing and would start building facilities in Beijing in 2019.
Chem Technologies was a leader in the production of fiber chemicals in the U.K. in the 1970s and 1980s and has been one of the most prolific producers in the world for decades.
Chemists around the world are seeking to tap its expertise in the testing and certification of chemicals.