Beijing PlasChem Trading has inked a definitive agreement to establish a joint venture with one of the subsidiaries of Nexeo Solutions, a provider of chemicals, composites, plastics and environmental services.
As per the conditions of the agreement, Nexeo Solutions will provide capital and leverage its current customer and supplier relations to help the joint venture, while Beijing PlasChem will transfer its current inventory, customer and supplier relationships, and employees to the new entity.
The joint venture will expand its presence to 30 locations throughout the major provinces of the People's Republic of China. It will have state-of-the-art distribution capabilities in composites, plastics and chemicals, leveraged by a proven sales team with an advanced technical application and sales capabilities. The deal is anticipated to be closed in the second half of 2012.
David Bradley, President and Chief Executive Officer at Nexeo Solutions, stated that since the company’s customers and suppliers seek for strategic distribution partners to leverage their global growth objectives, the company expects that the new joint venture represents the necessary cross-board partnership and skill for success.
According to Zhigang Yang, Co-founder and Chairman of Beijing PlasChem Trading, the company is proud about its business reach across China and its potential to produce value for customers and drive growth. The collaboration with Nexeo Solutions will expand the company’s products and services. The team of Beijing PlasChem and Nexeo Solutions has already commenced integration planning and started discussions with customers and suppliers to brief the advantages of the new entity.