Any business venture requires the right agreements, and those agreements must abide by the laws of wherever that venture takes place. This gets more complicated when you include international partnerships.
In 2021, for example, two chemical manufacturing businesses aimed to join forces in the Asian automaker market.
KPX and Huntsman unite
The President of KPX Chemical, one of the leading polyol producers for polyurethanes in Korea, described what this partnership would accomplish. The new entity, KPX Huntsman Polyurethanes Automotive Co., aimed at becoming the industry’s preferred innovation partner by meeting the growing demand for autonomous vehicles and electric transport solutions in Korea.
Huntsman Corporation, headquartered in Texas, is a global manufacturer of specialty chemicals with a key market in Korea. Its part in the joint venture was to create systems solutions that meet customer needs for improved comfort and superior acoustics.
Both companies partnered together in response to the profound changes to Korea’s automotive industry as they looked to accelerate growth in a vital market sector.
Businesses creating businesses
When the time comes for a business to branch out or expand in an industry, there are several options available, including joint mergers like this. Considering this option potentially involves dozens of meetings and agreements. The conversations may include internal meetings with boards of directors or partnership meetings between prospective companies. Eventually, both businesses must work with the relevant government bodies to form the joint merger legally.
In these situations, a well-drafted corporate agreement may help avoid confusion when starting out and curb partner-breaking misunderstandings down the road. Contact an experienced Houston business attorney today to schedule your initial consultation.