Chemicals industry has sought a $4 billion deal with China’s ChemChina Chemical Group Co. as the industry seeks a foothold in the Asian market.
ChemChina has been building a $2.7 billion factory in China to make chemical products for use in China.
The company has a production capacity of about 10 million metric tons, the equivalent of about 1.5 million barrels a day.
The U.S. is the largest exporter of chemicals to China, which has been growing its economy and is investing billions of dollars in the nation.
Last year, ChemChina began a program to develop its own products in China, including pharmaceuticals, cosmetics and other products, as part of its efforts to diversify its supply chains and gain a foothold there.
Its biggest acquisition was a chemical division of Shanghai ChemChina Co., which owns a controlling stake in the chemical giant, which plans to invest $1 billion to expand the plant.
ChemChina, which also produces chemicals for China’s largest steel producer, Huajian Chemical Co., plans to buy another $1.5 billion in a deal that would give it a market share in China of more than 30 percent.
Chem China has made acquisitions in other industries.
It acquired a minority stake in a plastics producer that has been producing plastic packaging for about a decade and has said it is seeking to diversified its business.
In May, ChemChinese purchased a controlling share in a company that makes chemical containers and packaging material, which is making plastic and glass containers for the beverage and pet industries.