Germany’s Henkel has signed a deal to sell its LCD and semiconductor cleaning business to Japan’s Nippon Kayaku for an undisclosed sum. The transfer of the business is expected to take place in March 2020.

Under the terms, Nippon Kayaku will acquire sales and operations in Japan and overseas, except in China and Taiwan, where the businesses will be taken over by Kayaku Chemical (Wuxi) and Taiwan Nippon Kayaku, respectively.

The Japanese company’s functional materials division will merge the new business with its existing electronic material products line, which includes micro-electromechanical system (MEMS) resists, LCD sealants, epoxy resins for epoxy mold compounds (EMC) and acrylates for solder resists in circuit board technologies.

 “The acquisition of the business will bring a significant benefit to Nippon Kayaku,” said Yukio Tachibana, head of the functional chemicals unit. “The business fits perfectly into our electronics materials business line. Many kinds of cleaners are used in the production of LCD panels and cleaning for semiconductor wafers is critical in electronics production.

“We are also looking forward to new opportunities through existing product line synergies, along with new product developments, while utilizing channels from both the Nippon Kayaku Group and Henkel and our expansion plans to become an advanced semiconductor materials supplier to achieve our FY2025 goal,” the CEO added.

In separate news, Henkel Adhesives Technologies has officially opened a new production facility in Kurkumbh, near Pune in India.

“India is one of the most important emerging markets with tremendous growth opportunities for our adhesives business,” said Jan-Dirk Auris, executive vice president, Henkel Adhesive Technologies.

The company invested €50 million in the facility to supply the country’s growing demand for high-performance solutions in adhesives, sealants and surface-treatment products across various markets, including flexible packaging, automotive, agriculture and construction equipment, general industry and metals.