Huafon Group completes the M&A of bio-based business under DuPont

On June 1, 2022, Beijing time, Huafon Group formally completed the delivery of the related business and technology of bio-based products spun off by DuPont of the United States. This is by far the largest overseas M&A transaction of Huafon Group.

The sales of DuPont's Biomaterials business unit to the Huafon Group is completed at a purchase price of approximately $240 million. The new company established after the acquisition is "Covation Biomaterials".

Sorona® production base in North Carolina, USA

This time Huafon Group acquired the assets of DuPont's business, mainly including its two production bases in the United States. One is DuPont's joint venture production base in Tennessee, USA, which owns two world-renowned brands Susterra® and Zemea®. Its main business is to develop, produce and sell biodegradable PDO that can produce high-performance polyester plastics and make them easily recycled. Another production base of the merger is DuPont's Sorona® business core manufacturing plant in North Carolina, USA. The main product is an environmentally friendly fiber material, bio-based specialty polyester (PTT), which is sold under the Sorona® brand. This kind of technology was first developed and commercialized by DuPont in 2000. Its applications are mainly in the clothing and carpet industries, and other small-scale application markets also include automobiles and packaging.

PDO production base in Tennessee, USA

According to reports, this acquisition of bio-based PDO and PTT and other products are in a leading position among their global counterparts whether in technology or market share. PDO is the main raw material for the production of PTT. PTT can be processed to synthesize fiber and engineering plastics. With its excellent characteristics, PTT is favored by clothing, carpet, electronics/electrical, automotive, appliances and furniture industries. At present, the market share is increasing, and the future market space is broad.

In order to ensure the stability of operations after the acquisition, Huafon Group retained the management and technical core team of the acquired company as well as the business, R&D and production bases in the United States, according to You Feifeng, Vice President of Huafon Group and Chairman of the Board of Covation Biomaterials.