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.”