THE WOODLANDS, Texas, March 2, 2012 /PRNewswire/ -- Nexeo Solutions, LLC ("Nexeo Solutions") announced today that one of its subsidiaries has signed a definitive agreement to form a joint venture with the shareholders of Beijing PlasChem Trading Co., Ltd. ("Beijing PlasChem").
In accordance with the terms of the deal, existing supplier and customer relationships, inventory and employees of Beijing PlasChem will be transferred to the joint venture and Nexeo Solutions will contribute capital as well as leverage its existing supplier and customer relationships for the benefit of the new entity. The new entity will employ more than 150 people within the People's Republic of China ("PRC") and will extend the reach of the business to thirty locations spread across the majority of the country's provinces. The joint venture will include world-class distribution capabilities in chemicals, plastics and composites, backed by an industry-leading sales force with sophisticated technical sales and application design capabilities. The transaction is subject to customary conditions to closing, including PRC government regulatory approval, and is expected to close in the second half of the calendar year.
"Nexeo Solutions is committed to further developing its global reach and we are excited about this significant expansion of our capabilities across China," said Nexeo Solutions' President and CEO, David Bradley. "As our suppliers and customers look for strategic distribution partners who can support their global growth ambitions, we believe that the Nexeo Solutions/PlasChem partnership reflects the type of cross-border collaboration and skills required for success."
PlasChem's Chairman and Co-founder, Zhigang Yang, said, "At PlasChem, we have long prided ourselves on our significant presence across China and our ability to drive growth and to create value for customers. The partnership with Nexeo Solutions will provide us tremendous opportunities to expand our product and service offering from the world's leading plastics, chemicals and composites producers across a broad spectrum of end markets." The Nexeo Solutions/PlasChem team has already initiated integration planning and begun discussions with suppliers and customers to outline the benefits of the new joint venture.
Additional details around the joint venture will be disclosed later this year pending final regulatory approval from the PRC.
About Nexeo Solutions
Nexeo Solutions is a private company originating from the distribution division of Ashland, Inc. Launched in April 2011; Nexeo Solutions employs more than 2,200 employees with operations across North America, Europe and Asia. Nexeo Solutions is focused exclusively on the business of globally connecting producers and customers of chemicals, plastics, composites and environmental services.
About Beijing PlasChem
Beijing PlasChem, founded in 1996, is a professional distributor dealing in engineering plastics, common plastic, chemical material and additive as well as agrochemical. Headquartered in Beijing, Beijing PlasChem has subsidiaries and offices in Shanghai, Shenzhen, Yuyao, Chongqing and other cities.
SOURCE Nexeo Solutions