On July 14 (BJT), the closing ceremony of the shareholders’ equity transfer between Fujian Highsun Engineering Plastics Co., Ltd. ("Highsun Engineering Plastics"), a subsidiary of Highsun Group (also known as HSCC) and AKRO-PLASTIC GmbH ("AKRO"), part of the Feddersen Group, was simultaneously held in Niederzissen, Germany and Fuzhou, China.

This ceremony signifies the formation of the Joint Venture which will be officially known as Highsun AKRO Engineering Materials (Changzhou) Co., Ltd. ("Highsun AKRO"). In this new company, Highsun Engineering Plastics will hold 51% shares. This Joint Venture is touted to be the first local high-end engineering materials company in China, characterized by its full integration in the polyamide 6 industrial chain. It specializes in providing added-value solutions for many engineering materials applications.

Rooted in Fujian, China for 38 years, Highsun Group has developed into an advanced manufacturing group, integrating multiple activities in the areas of chemical fiber, chemicals and new materials’ production. It has been highly successful in integrating eight global industrial polyamide 6 chains. With its core of an annual caprolactam output of 1.5 million tons, HSCC has successfully developed multiple new material projects, including semiconductor raw materials, new textile and clothing materials, as well as automotive industry-related applications.

AKRO-PLASTIC, founded in 1988 and headquartered in Niederzissen, Rhineland-Palatinate, Germany, is a professional high-end engineering materials manufacturing company, specializing in innovative products and applications. With its unique light-weighting solutions and its ICX^® Innovative Compounding and Extrusion Technology, it has successfully served many well-known automobile manufacturers such as Mercedes-Benz, BMW, Audi and their suppliers, as well as major electronic and electrical manufacturers.

This new Joint Venture brings forth the advantages of an enhanced product portfolio, expanded customer network, technology and operational excellence. Highsun AKRO continues to focus on Automotive and Electronics and Electrical Industries, with the aim to be the industry standard solution provider.

" I am profoundly grateful to see this great moment which represents a milestone for the future of our company," Mr. Andreas Stuber, Managing Director of AKRO-PLASTIC, said, "With Highsun as a fully backward integrated world market leader for PA6, AKROs leading ICX® Technology and outstanding formulations for EP, the combined strengths of both partners will enable us to constantly focus on efficiency, productivity and quality of the products, and of course a long-term value creation between Highsun and AKRO.”

Moving into the field of advanced compounded engineering materials is another important initiative of the Highsun Group as part of its policy of "Strengthening and Extending the Chain" and fulfilling its dream to further contribute to the growth of China's new advanced materials manufacture. "This transaction underlines that we really have all the ingredients in house to become the most competitive global caprolactam and PA6 producer and realizes the long-standing dream of our Group to move into engineering plastics." Mr. Chen Jianlong, Chairman of Highsun Group said, "We will be equipped with the most advanced production technology in the field of compounding of engineering materials in the world; we will boost the localization of new materials in China and transform the local industrial landscape, thus contributing to domestic multi-industry developments like new energy vehicles and electronic appliances, promoting our new materials to globally grow the reputation of strong Chinese brands.

“We are confident that the need for high-quality, reliable, differentiated and locally produced Engineering Materials through this joint venture will grow well above market growth rates in the coming years. The joint venture partners have fully complementary strengths whereby the Highsun AKRO partnership will benefit from a world-class backward integration in the polyamide 6 chain.” said Roelof Westerbeek, Vice President, New Materials Division of Highsun Group.

For more information

Highsun Holding Group

Ms. Zou Lingling

Email: Ms. Lingling.zou@hscc.com

AKRO Engineering Plastics (Changzhou) Co, Ltd.

Ms. Echo Sun

Email: echosun@kdf.com.cn