Hanoi (VNA) AICA Kogyo Co., a Japanese manufacturer of chemicals and housing materials, said on October 4 it will buy two Vietnamese synthetic material makers at a total cost of about 980 million JPY (9.2 million USD).

The AICA Kogyo’s Taiwan-based subsidiary, Evermore Chemical Industry Co., will sign contracts in early October to acquire a 100 percent stake in U-Best Vietnam Polymer Industry Co. and Vietnam Sunyad Technology Ltd, the firm said in a statement.

The acquisition is scheduled to complete in early 2020.

Evermore Chemical, with its 50.1 percent owned by AICA Kogyo, produces and sells synthetic leather polyurethane (PU) resins in mainland China, Taiwan and internationally.

The firm has been stepping up exports of urethane resins to Vietnam in recent years as its existing clients have relocated their production bases from China to Vietnam to avoid impacts of the US-China trade tension.

As a result, it holds the top share in Vietnam’s market for polyurethane resins for use in sports shoes.

Meanwhile, the two Vietnamese manufacturers have plants located close to each other at the Nhon Trach 5 Industrial Park in the southern province of Dong Nai. This is suitable to Evermore’s strategy to expand its market share in Vietnam.

AICA Kogyo is also considering expanding its business in the Southeast Asian market through cooperation between Evermore Vietnam and Evermore Taiwan./.