The deal expands Brenntag Essentials’ business in key focus markets that include Singapore, Malaysia, Indonesia and the Philippines. Aik Moh operates nine blending and warehousing facilities across the four countries, mostly distributing solvents, glycols, and blends to customers in industries such as coatings, water treatment, industrial cleaning, construction, oil & gas, inks and polymers.

“With the addition of Aik Moh Group to Brenntag Essentials, we execute our Strategy to Win in the Asia-Pacific region, strengthening our local and regional distribution network in Asia Pacific, enhancing our last-mile delivery capabilities while at the same time expanding our mixing and blending services,” said Steven Terwindt, member of Brenntag’s management board and chief operating officer of Brenntag Essentials.

Jimmy Soh, Aik Moh’s managing director added: “Brenntag helps us utilize our strong infrastructure and market reach by adding the global footprint and scale to our operations to unlock additional efficiencies.”

Aik Moh generated sales of approximately €76.6 million in the 2022 financial year ending Mar. 31. Closing of the transaction remains subject to the usual conditions and regulatory clearance.

New China site starts up

In separate news, Brenntag announced on Mar. 15 that it had officially started commercial operations at a new site in China. The site in Zhangjiagang, Jiangsu province – not far from Shanghai — expands the distribution group’s operations in the country and also simplifies its operations by reducing the complexity of moving products around several external warehouses.

The facility is located in the Yangzijiang Chemical Industrial Park, in the Yangtze River Delta, which Brenntag said is one of China’s most dynamic economic areas and close to many international customers and suppliers with a local presence in the chemical park. It holds 20 storage tanks of various sizes, with warehouse space for both Class A and Class C products, as well as workshops and an on-site laboratory for blending, testing and repackaging.

Liu Hua, president of Brenntag China and Hong Kong, commented: “Many of our customers and suppliers in China are developing a China for China and China for Asia strategy, which includes establishing a more complete supply chain locally, enhancing manufacturing capabilities in the country and moving research and development capabilities to China. With our new site operational we will be much better able to serve these local partners on a larger scale and with greater efficiency.”

Brenntag now operates at four sites across China, providing services from Cangzhou, Hebei in the North to Zhangjiagang in the East, to Dongguang, Guangdong in the South and Chongqing in the Southwest. The German multinational distributor said the facilities form an “excellent foundation” for Brenntag China and Hong Kong to further grow its business in China in the coming years.

Author: Elaine Burridge, Freelance Journalist