Brenntag, the global market leader in chemical distribution, has signed an agreement to acquire all outstanding shares in Zhong Yung (International) Chemical Ltd. The first tranche of 51% was already acquired in 2011 and the company has demonstrated a positive development since that time. Brenntag is now buying the remaining 49%. Zhong Yung has a significant presence across the mainland of China with modern equipped distribution facilities in Beijing, Tianjin, Shanghai and Guangzhou.
Henri Nejade, Member of the Board of Management of Brenntag Group and CEO Brenntag Asia Pacific, says, “With the Zhong Yung participation, Brenntag once had its strategic market entry in the fast-growing Chinese chemical market. In the 5 years of cooperation with a local partner, we saw a successful development of the business, strengthening Brenntag’s footprint in the Asia Pacific region. Zhong Yung is an excellent base for strong future growth in China for our existing business and is an ideal platform for further acquisitions.”
Zhong Yung is a major industrial chemical distributor with excellent infrastructure in the key economic regions in China including laboratories, blending and storage capabilities. The company continuously focuses on the expansion in the fields of storage, distribution and value-added services.
Ni Jianzhong, Chairman of the Board of Directors of Zhong Yung and future Chairman of the Board of Directors of Brenntag in China: “The successful cooperation between Brenntag and Zhong Yung laid a strong foundation for the positive expansion and further growth in China. We will continue to build upon this solid platform to broaden our product portfolio further and be the preferred partner for value-added services for both customers and suppliers throughout the company’s network in China.”
About Brenntag:
Brenntag, the global market leader in chemical distribution, covers all major markets with its extensive product and service portfolio. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 530 locations in 74 countries. In 2015, the company, which has a global workforce of more than 14,000 employees, generated sales of EUR 10.3 billion (USD 11.5 billion). Brenntag connects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 180,000 customers. This includes specific application technology, an extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling. Long-standing experience and local excellence in the individual countries characterize the global market leader for chemical distribution.