Bayer MaterialScience AG
News release D-51368 Leverkusen
Tel.: +49 214 30-72362
Bayer MaterialScience to acquire Taiwan´s Ure-Tech Group
Much more flexibility to supply customers around the world
Leverkusen - Bayer MaterialScience will acquire Taiwan’s Ure-Tech Group, the
largest thermoplastic polyurethane (TPU) producer in the Asia Pacific region. With
this acquisition the Germany-based company will become the worldwide largest
supplier and solutions provider of TPU resins and films. The deal is subject to
regulatory approval by the cartel office and is expected to be closed in the first quarter
of 2007. Both parties have agreed not to disclose purchase price and other related
details of the acquisition. In 2005, approximately 180 employees of the Ure-Tech
Group generated sales of around USD 55 million. Sales of Bayer MaterialScience’s
Business Unit Thermoplastic Polyurethanes amounted to EUR 192 million last year
with roughly 450 employees.
Combining its activities with Ure-Tech will substantially strengthen Bayer
MaterialScience’s existing TPU market position in Asia Pacific, significantly
widening and solidifying its market access, especially in Taiwan, China and the South
Asian countries. It will become the market leader in TPU resins supply in the Asia
This acquisition will solidly position Bayer MaterialScience to tap into the significant
growth potential for TPU resins in Asia Pacific, especially China. It also provides the
impetus for Bayer MaterialScience to accelerate its global growth in the TPU resins
market. In 2005, the total TPU resins and films market was worth about 1.2 billion
Dr. Hagen Noerenberg, Bayer MaterialScience’s Chairman of the Board, said: “We
are combining Bayer MaterialScience’s global expertise, our international network of
customers and locations and our innovative strength with Ure-Tech’s market access.
The company is the leading Asian supplier of TPU resins and has strong local
expertise as well as close customer relationships.”
“As the world’s largest TPU supplier and solution provider of resins and films, we aim
to be the number one partner for customers worldwide, providing them superior value-
added service and solutions, fast response time and market-focused innovations,” said
Dr. Tim Bielfeldt, Global Head of Bayer MaterialScience TPU Business Unit.
Ure-Tech’s CEO, Frank Huang, said: “This is a match made out of understanding of
both our strengths and special know-how. We complement each other in the areas of
production, marketing, research and development.”
Together with Ure-Tech’s production facilities, Bayer MaterialScience will have in
close proximity to its customers a total of six TPU resins and two films production
facilities in North America, Europe, and Asia Pacific. Four of these are in Asia
Pacific, in Taichung, Taiwan; Shenzhen in Southern China; Cuddalore, India; and
Osaka, Japan (a joint venture with Dainippon Ink & Chemicals, Inc.). The other four
are in New Martinsville, West Virginia, USA; South Deerfield, Massachusetts, USA;
and in Dormagen and Bomlitz in Germany.
“All production facilities will be linked up as a global network and therefore will
significantly increase our flexibility to supply customers around the world,” Tim
Customers will also benefit from the company’s backward-integration with raw
materials, which ensures the security of supply, as well as the forward integration with
films, with Deerfield Urethane and Epurex Films.
Bayer MaterialScience, together with Ure-Tech, will also offer customers worldwide
an unbeatable range of products, applications and solutions. From Bayer
MaterialScience, Desmopan® and Texin® are well known brands the world over. In
Japan, Pandex® (from our Joint venture with Dainippon Ink & Chemicals, Inc.) is a
top brand in the industry. Ure-Tech’s Utechllan® is also a highly respected brand
among customers in Asia. These are brands that customers have come to rely on for
consistently high quality products with innovative applications and solutions.
Both Bayer MaterialScience and Ure-Tech are firmly committed to developing the
combined family of brands and their applications further to provide customers with
even more choices, faster and better solutions, and even more innovative applications.
“Innovation remains a critical driver for us going forward, to help us grow our markets
with new products and applications, and to further improve efficiency in our systems,
processes, and service quality,” said Tim Bielfeldt.
The acquisition of Ure-Tech’s TPU operations will have no negative impact on
employees. In fact, it will offer employees of both companies more opportunities to
grow and to contribute to the company’s vision of being the number one partner for
TPU customers worldwide.
“We will need every single talent and every innovative idea to fuel further growth,
achieve greater efficiency and stay continuously innovative in the market place to
sustain our global leadership position in the long run,” said Tim Bielfeldt.
About Bayer MaterialScience:
With sales of EUR 10.7 billion in 2005, Bayer MaterialScience AG is one of the
world’s largest polymer manufacturers. Its main fields of activity are the production of
high-tech polymer materials and the development of innovative solutions for products
used in many areas of everyday life. The main consumer sectors are the automotive,
electrical/electronics, construction, sports and leisure industries. Bayer
MaterialScience has production facilities at 40 sites around the world and a workforce
of approx. 18,800. Bayer MaterialScience is part of the Bayer Group.
Taiwan-based Ure-Tech group is the biggest producer of Thermoplastic Polyurethane
(TPU) elastomer in Asia Pacific, manufacturing products under the Utechllan® brand.
It was founded in May 1992 and now has a manufacturing plant in Taichung, Taiwan,
and another production facility in Shenzhen, China. Its Utechllan® brand of TPU is
widely used by the footwear and sports and leisure industries among others in the Asia
Information for editors:
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products, applications and services of Bayer MaterialScience can be found at
www.bayerbms.com. Further company facts and figures are outlined at
Leverkusen, October 23, 2006
Dr. Frank Rothbarth, Tel.: +49 214 30 25363, Fax: +49 214 30 66426
Asia Pacific Media
Tan Yong Meng, Tel. +852 3697 2818, Fax: +852 3526 4718
Wang Rowena, Tel. +86 21 6146 8152, Fax: +86 21 6146 8153
Annette Wiedenbach, Tel. +86 21 6146 8136
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This news release contains forward-looking statements based on current assumptions and forecasts made by
Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial situation, development or performance of the
company and the estimates given here. These factors include those discussed in our public reports filed with the
Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F).
The company assumes no liability whatsoever to update these forward-looking statements or to conform them to
future events or developments.