Shanghai Hangri Chemical Co., Ltd. completed the acquisition of Hitachi Chemical Co., Ltd.

After more than a year of negotiations, AVIC International and Japan's Hitachi Chemical Co., Ltd. (referred to as Hitachi Chemical) reached a preliminary agreement in February 2016. AVIC International will acquire Hitachi Chemical's transparent filled film (OCA) related business, and plans to transfer to China Localized production in China. In order to cooperate with this acquisition, AVIC International invested and established Shanghai Hangri Chemical Co., Ltd. (referred to as Hangri Chemical) to carry out specific localization work. The first phase of Hangri Chemical plans to invest 200 million yuan to complete the acquisition of this business and build a high-end OCA production line with an annual output of 3.6 million square meters in Zhangjiagang City, Jiangsu Province. The first production line is scheduled to be put into operation by the end of January 2017. With the help of AVIC International's resource layout in the whole industry chain, it is expected to achieve sales of 200 million yuan and tax revenue of 23.79 million yuan in 2017.

This acquisition is the first cross-border cooperation between a Chinese-funded company and a Japanese electronic materials company in the past ten years. The acquired transparent filling film is widely used in smart phones, tablet computers, smart vehicles, industrial control, medical terminals, ATM and other fields. In addition to Hitachi Chemical, there are only a few manufacturers such as 3M and Mitsubishi Materials in the world who can supply stably.

The scope of the acquisition includes:

・Hitachi Chemical owns all intellectual property rights related to transparent filling films and the ownership of the trademark "FINESET".

・All Hitachi Chemical's manufacturing technologies, manufacturing equipment and related supporting equipment related to transparent filled films.

・Customer resources related to all transparent filled films of Hitachi Chemical.

Hitachi Chemical Co., Ltd. is the largest electronic chemical material company under the Hitachi Group, focusing on the R&D and manufacturing of high-end chemicals and materials for a long time. Through this acquisition of Hitachi Chemical's related businesses, my country's technical level in the field of high-end electronic materials can be greatly improved. Taking this acquisition as a starting point, Hangri Chemical will start comprehensive cooperation with Japanese material companies, and will subsequently start production in Zhangjiagang, including core products such as high-end optical adhesives, high-end adhesive materials for display and semiconductor industries.

AVIC International specially hired Dr. Chen Tian'an, a well-known domestic electronic materials expert and expert of the Thousand Talents Program, as the general manager of Aerospace Chemicals. The core members of the project team have long served international well-known material companies and have strong technical research and development and market development capabilities. . Not only can it ensure that the products continue to have a leading level in the world, but it can also combine the group advantages of AVIC International for global promotion. At present, the research and development samples have been initially approved by many well-known electronics companies in the United States and South Korea.

It is believed that with the strong support of the Zhangjiagang government, the continuous efforts of team members, and relying on Hitachi Chemical's advanced technology platform, Hangri Chemical will definitely become a high-end electronic material company with the most development potential in China.