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GCH Technology, a Chinese manufacturer specializing in additives for synthetic resins and modified plastics, has announced plans to acquire a French chemicals company for $9 million USD. The company’s board has approved the purchase of Palmarole Trading and intends to invest an additional $15 million USD into the business after the deal closes to support its growth efforts.
This strategic move aims to enhance GCH’s integration with Palmarole’s sales network and service systems, establishing direct relationships with major chemical clients across Europe and the Middle East, including companies like Borealis and Borouge. The acquisition is expected to expedite GCH’s compliance certification process in international markets, create synergy in expanding market reach, and foster the development of new products. These efforts aim to increase the company’s market presence and influence in Europe and the Middle East, while also ensuring stable growth in overseas revenues.
In addition, the company’s board approved acquiring a 48% stake in Cetc Yizhihang Chongqing Technology for 6.2 million yuan (approximately $877,510 USD). This company develops drone management platforms, and GCH intends to leverage its core technologies and R&D strengths in polymer materials to accelerate expansion into high-end emerging sectors such as low-altitude economy and defense technology. This move is expected to significantly bolster the company’s business growth.
By utilizing Yizhihang’s customer base and accumulated data, GCH plans to speed up research and development of materials tailored for the low-altitude economy. The company’s investment director highlighted that Yizhihang has already launched comprehensive drone management, intelligent inspection, and unmanned logistics scheduling platforms, which are currently in use at tourist attractions, street surveillance, industrial zones, and campuses.
The expert added that the low-altitude economy is a complex ecosystem still in its early stages, with large-scale application growth anticipated within three to five years.
For the first nine months of the year, GCH generated revenues of 740 million yuan (about $100 million USD) and a net profit of 228 million yuan ($31 million USD), representing year-over-year increases of 14% and 15%, respectively.
Shares of GCH closed today at 38.36 yuan (approximately $5.44 USD) in Shanghai, up 1.4%, following a 3.7% decline in the previous trading session.
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