Harima Chemicals acquires Henkel’s Solder Materials business
Japan’s Harima Chemicals Group has concluded an agreement to acquire the commercial rights, assets, etc. related to the Solder Materials business of German chemical manufacturer Henkel AG & Co. KGaA.
Harima Chemicals Group produces various chemicals from pine tree-derived rosin. One of its main products is solder paste, a material made from a combination of metal powder and rosin derivatives. Its solder products are mainly used in the automotive and communication equipment industries for electronic substrates and components.
In the automotive industry, as the trend toward electrification and automated driving accelerates, the volume of electronic components used is rapidly increasing, and there is growing demand for solder materials that offer high reliability and excellent durability even in harsh environments.
Harima has many biobased global businesses, including Lawter, Plasmine, and two Tall Oil Fractionation biorefinery plants located in Kakogawa, Japan, and Mt. Maunganui, New Zealand.
Henkel’s Solder Material business will place Harima in a more robust position to utilize their Tall Oil Rosin (TOR) production, as well as their current solder paste portfolio.
Since Henkel AG & Co. KGaA’s Solder Materials business has numerous customers in the automotive industry in Europe, as well as in the industrial equipment and consumer electronics industries worldwide, this acquisition will greatly expand Harima’s customer base. In addition to high durability lead-free solder pastes, Henkel AG & Co. KGaA’s solder materials line-up includes solder pastes which are proof against long-term storage at room temperature. This type of solder paste is environment friendly, because it does not require refrigeration like regular solder pastes and can save electricity.
“We target enhancement of market competitiveness by the additional variety of products as well as improvement of profitability and plant productivity through increased production volume after consolidation of the two businesses,” the company said in a statement.
Assets related to the Solder Materials business of Henkel AG & Co. KGaA include production assets, production technology, trademarks, patents, research equipment, inventory, employees, commercial rights, etc. in Europe, the U.S. and Asia, as well as factory real estate in Malaysia.
The acquisition price will not be disclosed due to an arrangement with Henkel AG & Co. KGaA. The acquisition price has been determined by obtaining and referring to a business valuation report by a third-party organization, in addition to an estimate of future profitability.