By Tuba Sahin
ANKARA (AA) - German thermoplastics processor Simona on Monday announced it plans to acquire 70% shares of leading Turkish plastic company MT Plastik.
The move, seen as part of Simona's strategic realignment in Europe, aims to strengthen the company's market position within the area of PVC foam products, it said in a statement.
PVC foam sheets are used primarily in the field of digital printing, advertising and structural engineering.
Noting that MT Plastik is a highly profitable company, Matthias Schonberg, the CEO of Simona, said: "Turkey as a location and the high share of exports already achieved by MT Plastik give us access to other interesting markets in Europe and the Middle East."
MT Plastik is a private owned company, employing around 50 people and generating revenue in excess of €11 million ($13 million). The company exports approximately 60% of its revenue, mainly to Europe.
Schonberg stressed that their customers will benefit from a greater focus on applications, a stronger market presence based on a dense network of competent distribution partners and improved logistics and services thanks to the transaction.
"Even against the backdrop of the current uncertainty brought on by COVID-19, we are confident of the timing of the acquisition.
"MT Plastik has mastered the crisis well so far and the advertising sector also looks set to emerge quickly from the crisis," Schonberg added.
Subject to the final approval of the antitrust authorities, the transaction is expected to be closed on Dec. 31.
Simona AG shares are traded in the General Standard of Deutsche Borse, Frankfurt, as well as in Dusseldorf.