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Wanhua say it sees BorsodChem as strategic investment

Chinese chemicals group Wanhua is interested in becoming a strategic investor in Hungarian peer BorsodChem, the company told MTI, reacting to earlier reports that BorsodChem's CEO considered Wanhua, whom he did not name, “hostile.”

Wanhua's professional expertise and capital strength could contribute significantly to BorsodChem's stability and outlook for long-term growth, the company said. The Chinese company added it is in talks with BorsodChem owner Permira.

In August, BorsodChem Chairman-CEO Wolfgang Buchele told MTI that an Asian investor who, the company had learnt, bought a significant part of BorsodChem's mezzanine loans with the involvement of investment banks could be a source of uncertainty as the investor had not informed BorsodChem in writing of its role.

“We see hostile intentions in the events because if interests were mutual, there would be no need to involve investment banks," Mr Buchele said. He added that BorsodChem's central strategy had always been to use its cutting edge technology to become one of Europe's leading isocyanate makers: if this technology goes to Asia, Hungary would not only lose a production unit, but the chance of further developments, and ongoing investments would be halted.”

The management of BorsodChem, which is deep in debt, has been in talks with the government on a loan from the state-owned Hungarian development bank MFB. (MTI – Econews)