Japan’s Aica Kogyo to buy 2 Vietnamese shoe material makers via Taiwan arm

05, Oct. 2019

HANOI, NNA - A Taiwan subsidiary of Aica Kogyo Co., a Japanese manufacturer of chemical and allied products, will buy two Vietnamese synthetic material makers to boost its production in Vietnam of polyurethane resins used for shoe soles and other goods.

The subsidiary, Evermore Chemical Industry Co., will sign contracts in early October to acquire a 100 percent stake in each U-Best Viet Nam Polymer Industry Co., a polyurethane resin and adhesive maker, and in Viet Nam Sum Yad Technology Ltd., an artificial leather maker, Aica Kogyo said in a statement on Thursday.

Evermore, owned 50.1 percent by Aica Kogyo, is due to acquire the shares in early January next year at a total cost of about 980 million yen ($9.2 million), the statement said.

The two to-be Taiwanese-owned Vietnamese manufacturers have plants located close to each other in the southern Vietnam province of Dong Nai adjacent to Ho Chi Minh City. This will provide Evermore with sufficient space and facilities for urethane resin production, the statement added.

Evermore has been stepping up exports of urethane resins to Vietnam in recent years as its existing clients have relocated their production bases from China to Vietnam, the statement said. As a result, the Taiwan firm holds the top share in Vietnam’s market for polyurethane systems for use in sports shoes, it added.

The shares will be transferred from the parent firm of U-Best Viet Nam, U-Best Polymer Industry Co. of Taiwan, and an investment firm that was set up by Vietnam Sun Yad’s parent firm, Sun Yad Construction Co. of Taiwan, to own the artificial leather maker.

Evermore is also considering expanding its business in the Southeast Asian market in cooperation with Taiwan’s U-Best Polymer Industry, the statement said.