(Yicai) June 5 -- Supezet Engineering Technology, a Chinese construction engineering company, will spend CNY109 million (USD15 million) to acquire South Korea's Innovare KTI-Fired Heaters to explore combined advantages in the international market of petrochemicals equipment.

The provider of petrochemical equipment integration will buy all of the shares in Innovare, a maker of fired heaters, the Shanghai-based firm announced yesterday. The two parties are already linked as the equity seller is the actual controller of Supezet.

Seoul-based Innovare counts American crude oil and gas giant ConocoPhillips, as well as South Korean chemical company LG Chem and SK Energy, a developer of petroleum products, as some of its clients. It earned about CNY104 million (USD14.4 million) in revenue and CNY8.7 million (USD1.2 million) in net profit last year, surging from 2022, according to its audited annual results. At the end of last year, the total value of Innovare's existing orders was about KRW49.8 billion (USD36.3 million), per the Chinese firm.

Supezet recognizes Innovare's core capabilities in the research and development, planning, provision, and installation of equipment used in the petroleum and chemical sectors as these have a high technical threshold and market barriers. Moreover, the target company maintains partnerships with multiple corporate partners in the upstream and downstream parts of the industry chain.

After the transaction, collaborating with Innovare should help Supezet improve its cost advantages and product quality, which should also help the Chinese firm mitigate export risks of international trade friction to some degree, it added.

However, the asset addition failed to boost Supezet's stock price today as its shares [SHA: 688121] closed 0.3 percent lower at CNY13.71 (USD2) in Shanghai.

Editor: Emmi Laine