China's Wanhua Industrial Group has acquired full control over Hungarian plastic raw material and isocyanate producer BorsodChem, BorsodChem announced here on Tuesday.

Wanhua has raised its stake to 96 percent from previous 38 percent in BorsodChem in a transaction of 1.23 billion euros (1.69 billion U.S. dollars), along with an option to purchase additional shares from the previous majority shareholders, Permira and Vienna Capital Partners.

The remaining 4 percent shares are owned by the company's creditors.

Wanhua has already invested 140 million euros (192.2 million dollars) in BorsodChem, used to finish construction of a new isocyanate and nitric acid facility. Wanhua is backed by a syndicate headed by the Bank of China.

The Wanhua takeover, combining BorsodChem with its existing operations, makes the company the world's third largest isocyanate producer.

Isocyanates are chemicals used in the manufacture of flexible and rigid foams, fibers, coatings, and are increasingly used in the automobile industry.

"BorsodChem will be responsible for Wanhua's European operation. We aim to expand BorsodChem and make it the most competitive isocyanate producer in Europe," said Wanhua Chief Executive Officer Jason Ding.

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