Newly set-up manufacturer Oakland Polymers Pty Ltd, registered under LHL Engineering and Richsteel Investments, has acquired the DyStar manufacturing facility in Pietermaritzburg, South Africa, expanding its polymer business.
Under the agreement, the chemical company has divested the entire 12,000 sqm facility to Oakland Polymers and Oakland Properties. DyStar Africa will continue to lease a portion of the premises from Oakland for office and warehousing purposes.
“The sale of the manufacturing site at DyStar Africa is part of our ongoing efforts to reconsolidate our business resources in Turkey, Africa & Middle East (TAME) region, with a focus on improving productivity and utilisation rates,” said Xu Yalin, managing director and president of DyStar Group.
Klaus Kadletz, regional vice president of DyStar in Turkey, Africa and Middle East (TAME), added: “In response to the current dynamic market, DyStar proactively explores a more cost-effective production environment to better support customers’ demand. In that respect, DyStar will enter a toll manufacturing agreement with Oakland to leverage its expertise in chemical manufacturing. DyStar is determined to grow our production capability, without compromising quality as we scale.”
DyStar reports that employees at the manufacturing site have been notified of the acquisition, and compensation packages have been offered to affected colleagues. Customers have been assured of uninterrupted supply during the transition period, with a seamless customer experience expected once the acquisition is finalised.
Nelson Govender, a management representative of Oakland Polymers, expressed enthusiasm about the acquisition, stating: “I strongly believe the acquisition gives both companies an opportunity to build stronger and robust synergies together as Oakland Polymer expands its footprint in the manufacturing sector in the coming days.”
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According to the chemical company, it remains committed to exploring sustainable solutions while striving to optimise its business resources globally. Through focused strategic actions, the company aims to achieve operational excellence in production and process flows, ensuring a streamlined and effective customer experience for stakeholders and the supply chain.