Orinko Advanced Plastics Co., Ltd. (Orinko Shares) has recently announced to acquire 70% of Italian modified plastics supplier OMIKRON with an expected investment amount of no more than EUR 25 million.

Orinko Shares is a high-technology company in China. As one of the innovative material suppliers in China with largest scale and wide customer coverage, the company has been listed on the Science and Technology Innovation Board. (Source: Orinko Shares)

Strategic planning: Deepening globalization with European base and market channel

This acquisition is a key strategy to further Orinko’s global expansion as it adds Europe’s local production base and mature market channel to the company, opening a new stage for Orinko’s globalization development.

More on OMIKRON

OMIKRON is an Italian company with expertise on modified plastics manufacturing and applications. Through chemical and physical modifying technologies, its products add specialized functions to basic materials (e.g. plastics and compounds) to fulfil customers’ need.

Its major products include PP compounded material, nylon composites, and post-consumer recycled (PCR) materials.

OMIKRON dedicates on the European local market, with focus on automotive and home furniture markets, and wide applications covering agricultural irrigation, tool box and more areas.

The company’s operating revenue in 2024 is about EUR 41.18 million.

Europe’s surging demand on high-end modified material yet high market standards

Europe is an important market for global high-end modified material applications. Particularly, demands in lightweight automotive, new energy, and green packaging are huge and steady. However, the standard in European market is relatively high and customer connection is also relatively strong.

With this acquisition, Orinko can have direct access to Europe’s localized operation platform and implement “local production, local service” business operation, which rapidly expand its position in the European market and its ability to serve local customers.

Integration in technology, market and management

The acquisition will bring effects in the following three major areas:

• Collaboration on technology and product: With OMIKRON’s localized production and certification in Europe and Orinko’s own proven products and solutions in Chinese market, the company can rapidly enter the European market. At the same time, Orinko can also learn more advanced research from specialized applications in Europe to strengthen its ability to innovate.

• Collaboration on market and customers: The two companies will share customer resources and market channel. OMIKORN provides market insight and customers’ demand for Orinko, offering services that targeting global customers.

• Collaboration on management: After successful transaction, the company will remain on operational flexibility and ensure Orinko’s strategic influence. These promote stable integration and effective collaboration on strategic planning, operation and culture.