On 20th July, CIECH S.A., the owner of CIECH Resins, signed the preliminary sale agreement for 100% of the stocks with LERG S.A. - a Polish resin manufacturer operating on the European markets.
This decision is a consequence of commencement of the review of the strategic options for the Resin business, started in autumn 2019, and of the provisions of the Group strategy for 2019-2021.
The preliminary agreement with LERG on the acquisition of CIECH Resins is based on the belief about the need to enhance the scale of activity and manufacture of resins, extension of the product portfolio and even greater activeness in the field of research & development, which will allow to propose more innovative products to the customers.
This agreement is not yet final and requires regulatory consents. We assess that this process will last for several months. Nevertheless, we continue to operate as usual. The cooperation with CIECH Resins is not going to change from the perspective of the customers and suppliers. All types of agreements, contracts and orders are going to be performed in a smooth and undisturbed way.
A strong and dynamically developing resin manufacturer is good news for the Polish and European customers for resins, a guarantee of even higher quality and competitiveness. On the other hand, it means new possibilities of tightening business relations for the suppliers and subcontractors.
- As in our strategy, we want to develop in businesses in which we hold a strong competitive position on the international market and which offer us the opportunity to develop effectively. Changes on the global resin market in recent years seem to confirm that an adequate scale of operations is required in order to effectively compete with global and regional competitors. That is why, as part of our review of strategic options for CIECH Żywice, we looked for a partner who, in addition to favourable transaction conditions, would also provide the possibility of further development of this business and enable us to use of the company's production and intellectual potential, and would continue our efforts to create an even more engaging work environment for the CIECH Żywice staff. And not without significance, it is a dynamic Polish producer from Podkarpacie, whose future is connected with operations in this region – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.
- The acquisition of CIECH Żywice is an important step in the achievement of the company's strategic goals, i.e. to become a leader in the production of resins and to increase the value, development potential and security of our company. Both companies have rich tradition, vast experience and a strong position in their industry. This will lead to the creation of a Polish company able to compete even more effectively on the global resin market. Therefore, we are very pleased that with the closing of the transaction, we will have the opportunity to welcome CIECH Żywice to the LERG Group. – emphasises Agnieszka Kozubek-Bespalenko, Vice-President of the Management Board and CEO of LERG.