TOKYO, JAPAN: Showa Denko K K (SDK) has agreed to acquire 100 percent shares of a non-stick speciality coating chemicals manufacturer, GMM Group (GMM). It is headquartered in Hong Kong, China.
Non-stick coating chemicals are materials to be coated on consumer goods including cookware, bakeware, and a variety of home electrical appliances, and on industrial goods including automotive parts and other industrial equipment, in order to prevent burning on, fouling, and soiling.
GMM operates non-stick coating chemicals business mainly in the field of consumer goods. Its major customers are the leading cookware manufacturing companies in the US. GMM has been steadily increasing sales by making the most of the superb properties of its products and the power of the differentiated brands promoted jointly with GMM’s customers.
It operates two manufacturing units in China and India, offering its highly-sophisticated engineering coatings directly to the local cookware manufacturing companies which are trusted by major cookware makers to manufacture cookware to be sold in the US market.
In line with its ongoing medium-term business plan “Project 2020+” which started at the beginning of 2016, SDK aims to reform its own business structure to have more stable revenue streams, through a creation of individualised businesses and increase in the ratio of its overseas sales.
SDK’s acquisition of GMM is a part of its strategic plans aiming to start new individualised businesses through extension of the company’s value chain into downstream markets and the sphere of its technologies, which form the foundation of its business activities.
SDK appreciates the capabilities of Ravin Gandhi, CEO of GMM, Raymond Chung, co-founder & general manager of GMM, and all employees who work for GMM. Together with all executives and employees of GMM, SDK will aim to gain the position of the leading company in the non-stick coatings industry, the company said.