The Carlyle Group announced on July 7th that it has agreed to invest US$87 million in privately owned Chinese chemical company Sinorgchem. Yi Luo, managing director of Carlyle Asia Partners, said the deal was finalized, however, he did not disclose any financial detail.

Sinorgchem is the largest Chinese supplier of para-phenylenediames (PPDs). Sinorgchem has grown rapidly since it was set up in 1999 thanks to a strong focus on technology innovation. Sinorgchem has developed into the largest supplier of PPDs as well as the supplier of 4-aminodiphenylamine (4-ADPA), which is an intermediary product that it supplies to other PPD manufacturers in Asia.

Sinorgchem's Chairwoman, Jing Liu, said that the two-way cooperation is a significant opportunity for the company. She further noted that Carlyle's track record of enhancing the internal management of the companies it invests in and also of making them more competitive in the international market. She expected that the tie-up with Carlyle will enhance management, accelerate internationalized process, and ultimately carry out its development strategy in overseas markets.