Dongwha buys Finnish tegofilm manufacturer
Dongwha Enterprise has bought Kotkamills Imprex for 34.5 billion won ($30.5 million), becoming the world’s second-largest tegofilm producer, the company said Friday.
Kotkamills Imprex is a subsidiary of the Finnish-based wood products company, Kotkamills Oy.
Tegofilm, or phenolic surface paper, is an adhesive sheet made by impregnating craft paper with phenolic resin that is resistant to water and pollution. It is used for concrete shuttering, after the sheet is dried and attached to plywood.
Only four companies around the world, including Dongwha and Kotkamills, can produce tegofilm.
Kotkamills Imprex, which specializes i n tegofilm and resin-treated core materials for high-pressure laminates, has produced 8.5 million square meters of tegofilm a month, following German-based Surfactor with 25 million square meters and Japanese-based AICA with 11.7 million square meters.
Dongwha Enterprise has pro- duced 5.4 million square meters of tegofilm a month.
“Large plywood manufacturers in Finland and Russia have recognized Kotkamills Imprex’s products for their good qualities,” a Dongwha official said. “With our first production base in Europe, we are expecting to expand our presences in Russia and other European countries.”
The company will likely improve the profitability of its tegofilm business as well because the plywood industry in Europe has continued to grow over the past years. Also, European companies are using tegofilm for furniture and ships, while Asian companies are only using the adhesive sheets for concrete shuttering.
“The European market has many more potential customers than the Asian market,” the official said.
On top of the recent acquisition, Dongwha Enterprise has continued to make attempts to foster its chemical material business, regarding the sector as the company’s new growth engine.
In April, it bought Tae Yang Chemical, the leading liquid phenolic resin producer in Korea, for 40.5 billion won.