Hodogaya Chemical has made Hungarian chemical manufacturer Framochem Kft a wholly owned subsidiary, securing a European manufacturing base. The acquisition price is approximately €87 million, with the investment expected to be approximately ¥16.6 billion. The acquisition was completed in August, and a commemorative ceremony was held in September.
Chemical manufacturer Hodogaya Chemical completed the acquisition of Framochem Kft, headquartered in Kazincbarcika in northern Hungary, on 25 August, making the company a wholly owned subsidiary. A commemorative ceremony was held in the city on 10 September, attended by the management of both companies and the Japanese ambassador to Hungary.
Established in 1992, Framochem Kft is a fine chemicals manufacturer engaged in the manufacture and sale of active pharmaceutical ingredients (APIs) and intermediates for pharmaceuticals, as well as fine chemical products using phosgene as a raw material. Hodogaya Chemical views the company as having strong technological capabilities and a customer base in the European market.
The acquisition is one of the key measures in Hodogaya Chemical's medium-term management plan and is intended to strengthen the specialty chemicals business within its functional resins segment, particularly its phosgene derivatives business. Making Framochem a subsidiary will secure a manufacturing base directly in the European demand center, in addition to the production and export structure in Japan.