It was reported that Fangda Carbon New Material Co., Ltd. (Fangda Carbon), a China-based company principally engaged in the production and sales of graphite and carbon products, has approved an investment plan to acquire Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC) from Koppers International B.V. (KIBV).

KJCC was jointly funded by KIBV and Yizhou Group and has a tar processing capacity of 300,000 tons per year.

Fangda Carbon planned to invest US$50 million to acquire 46.23% of KJCC's shares in order to meet the production needs of needle coke required by the company's subsidiary Fangda Xikemo. And, New Japan Coal Chemical Company (NJC), a subsidiary of Nippon Steel, would spend US$57 million to acquire 53.27% of KJCC.

This investment plan would save the Fangda Carbon's time and capital costs, and ensuring the supply of high-end raw materials for the company's electrode plant, thereby extending the product chain upstream.