(Yicai Global) Sept. 26 -- Shenzhen Capchem Technology will offer USD1.2 million to acquire the electrolyte business of Germanchemical giantBASF in the Europeanand North American marketsand theirrelated technologies,brandsand customerlists.

Capchem Technology,amain maker of electrolytesforChina'snew energy batteries, recentlystrucka dealtobuyBASF'sUSunitNew Jersey-basedBASF Corp.,Capchem Technologysaid in an announcement yesterday.

BASF Corp.'sUSelectrolytefactories will stop their production in December after the acquisitionconcludes. Their remaining purchase orders willafterwards come fromCapchem Technology'splantsinChina,andBASF Corp. maynot sellthe subjectelectrolyte products tocompanies on their customerlistsforthe next three years, the announcement stated.

Electrolytes are substancesthatbecomean electrically conducting solution when dissolved inwater or anotherpolar solvent,public information shows.

The products madewiththetargetassets include electrolytesfor lithium-ion batteries and supercapacitors. Many globally renowned companies, new energy batterystartups and universities are downstream clients,perthe announcement.

The completion of this acquisition will help Capchem TechnologyexploretheEuropeanand North American marketsand coordinatedevelopment with the manufacturing bases in Poland the companyhas invested in and whichare under construction, after the acquisition of BASF's electrolyte business in China andproduction basein Suzhouin East China last yearenabledit to assume aleading position inthedomestic and KoreanandJapanese markets,perthe announcement.

Capchem Technology's Poland-based unithasoffered PLN4.93 million (USD1.35 million) tobuy80,188 square metersofland in Olawain the country's southwest to builditslocal electrolyte projectsthere, the announcement said.

BASF's electrolyte business in Europe and North America, whichCapchem Technologyis acquiring,and itsSuzhou plantsformerly belonged toUS-basedFerro, butBASF boughtthemin 2012, the announcementstated.

The electrolytebusinesstheacquisitiontargets are underBASF Corp.'sfunctional materials and solutionsdivision, the announcementadded.

Editor: Ben Armour