Megachem hammers a SPA with Japanese-based Chori Co.

SGX-listed chemical solutions provider planning a "mutual expansion" through expertise sharing.

In an announcement to the exchange, MegaChem Limited (“MegaChem” or the “Company”, and together with its subsidiaries and associated companies, collectively the “Group”), a global one-stop specialty chemical solutions provider, said it has entered into a strategic partnership agreement (“SPA”) with Japanese group, Chori Co. Ltd. (“Chori” or “Chori Group”), for the mutual expansion of both parties’ chemicals business through the tapping of respective marketing expertise and network.

"Chori Group is predominantly engaged in the business of trading and manufacturing textiles, as well as chemicals and machinery operations. MegaChem’s agreement with Chori will focus mainly on Chori’s chemical products segment, catering to increasing demand for chemicals in Asia," said MegaChem.

“Given Japan’s importance in the chemical value chain, this landmark agreement with the Chori Group is significant on many levels. Besides strengthening our supply sources, both Chori and MegaChem are expected to benefit from each other’s synergistic capabilities in chemicals. The resultant widened product range will also provide us with greater thrust in building up our business in selected market segments as yet fully tapped into by the Group," said MegaChem’s Executive Chairman and Managing Director, Mr Sidney Chew. 

For his part, Chori’s Executive Director, Mr Noboru Kojima, commented, “We are constantly working to establish new business models through collaborative initiatives that are in keeping with Chori’s global outlook and dynamic capabilities, and the SPA with MegaChem is one such example."

"We are delighted to partner MegaChem in our chemical products business, tapping onto each other’s expertise in the chemicals industry. In particular, we believe MegaChem’s strong Asian network and higher-value custom blending operations complement Chori’s strengths well, enabling us to further extend the reach of our global distribution network and business activities," added Mr Kojima.