Nine months is enough to witness the process of a cross-border merger and acquisition moving from its initial landing to deep integration.

Global New Material International (6616.HK) officially completed the strategic acquisition of Merck Group’s surface solutions business SUSONITY on July 31, 2025. Nine months on, the Group’s post-acquisition global integration is well underway.

Through nine months of synergy and integration, the results of multi-dimensional operations such as capacity, channels, brands and markets are gradually being realized: On the production side, all three major production bases of SUSONITY across three continents are operating at full capacity; On the talent side, there is a net increase in the number of global employees, and the support for innovation resources continues to grow; On the synergy side, the cross-selling between SUSONITY and CHESIR under the group has completed two rounds of implementation, and the third round of cooperation is progressing smoothly; On the market side, SUSONITY’s brand continues to make frequent appearances at major industry exhibitions around the world, steadily expanding its global influence…

What substantial changes has this cross-border acquisition, which has attracted much attention from the industry and capital markets, brought to the group’s development? How effective is the integration? In this article, we will combine data and facts to review the phased results of this merger and acquisition.

We’ll start with three dimensions: who SUSONITY is, the significance of Global New Material International’s strategic acquisition, and the results of the nine-month integration.

Who is SUSONITY?

It’s an industry leader whose name may not be widely known, but whose products have already permeated every aspect of daily life.

If you take out a euro note from your wallet today and gently tilt it against the light – the shifting effect of anti-counterfeiting color that changes with angles and refracts a metallic luster is backed by SUSONITY’s pigment technology.

If you flip open a biometric passport of an EU member state, the fine optical color-changing coating on the cover also comes from the same technology system.

This solid technical strength stems from the company’s more than 66 years of accumulated craftsmanship.

SUSONITY is the new name of Merck’s global surface solutions business, which was acquired by Global New Material International, with its origins tracing back to Germany in 1959. At that time, in Darmstadt, Germany, a group of chemical engineers were exploring a completely new pigment technology – using mica as a substrate and applying a precise oxide coating process to give the material the property of showing different colors as the angle of light changes. This technology later transformed the landscape of the high-end pigment industry and became SUSONITY’s core technological legacy.

Over the course of more than six decades, SUSONITY has built a highly differentiated brand and product matrix:

• Iriodin® – Pearlescent and metallic effect pigments series, one of the most recognizable brands in the industry, widely used in automotive coatings, industrial coatings and printing inks
• Xirallic® – An effect pigment based on alumina, known for its extremely intense glitter and color saturation, is a core material for high-end automotiveOEM paints
• Timiron® – Acosmetic-grade pearlescent pigment with mother-of-pearl gloss as its standard, the designated supplier for the world’s top luxury beauty brands

These well-known brands are not merely trademark symbols but tangible manifestations of technological barriers. Behind each brand name lies dozens of patents, hundreds of mature formulas, and decades of deep accumulation of customer relationships.

In the highly specialized segment of high-end effect pigments, SUSONITY is not just a participant, but a definer.

“It’s not the acquisition of a factory, but the acquisition of a technology platform that has a top reputation in the global high-end materials industry.”

This is not an overstatement. The true value of SUSONITY lies in what cannot be simply replicated: its 66-year formula database, the trust built with the world’s top automotive and beauty brands, and the production and quality control system certified under the European regulatory system.

A company of its kind can build a new factory in five years but cannot replicate a technology brand that has been recognized by Mercedes-Benz, BMW, Lancome and Chanel in five years.

What is the strategic significance of Global New Material International’s merger and acquisition?

This is a long-term strategic elevation rather than a mere scale expansion.

To understand the logic of this acquisition, one must first understand the strategic evolution trajectory of Global New Material International.

The group has long been deeply involved in the field of pearlescent pigments, and its CHESIR brand has established a strong channel network and large-scale production capacity in the Chinese market. Looking at the global industry trends, opportunities and challenges coexist:

The opportunity is that the global high-end surface materials market is accelerating towards functionalization and precision. The redefinition of body color brought about by automotive electrification, the demand for precision coatings in consumer electronics, and the upgrading of high-end packaging materials – each direction calls for material solutions with higher technical barriers and greater added value.

The risk is that purely manufacturing-oriented pigment companies will face the possibility of being marginalized in this upgrade.

SUSONITY precisely fills some of the most critical gaps in Global New Material International’s strategic map:

Firstly, it complements the advantages of high-end brands and overseas certifications. Brands like Iriodin® and Xirallic® have a high level of technical recognition among automotive OEM customers in Europe and the United States. This is a trust asset that CHESIR will find it difficult to build independently in the European and American markets in the short term.

Secondly, it improves the global production network layout. Gernsheim in Germany, Savannah in the United States, and Onahama in Japan – three strategically located production bases that correspond to the three core markets of Europe, North America and East Asia respectively, constitute a truly global manufacturing network. This layout enables Global New Material International to respond to global customers’ demands with localized supply chains.

Thirdly, it creates complementary business models. SUSONITY has long adopted a customer service model based on direct sales, deeply embedded in the material research and development processes of the world’s top brands. It is highly complementary to CHESIR’s distribution-channel-based business model – the former targets high-value top customers, while the latter covers a wide range of market penetration channels.

Fourthly, it signals deep integration in management. Dr. Su Ertian, Chairman of GNMI, has been appointed as CEO of SUSONITY, — a personnel decision that in itself sends a well-considered signal of integration: both a promise to the German team to respect local culture and professional competence, and a demonstration to the capital market of the Chinese shareholders’ determination to be deeply involved in operations rather than acting as hands-off owners.

After the acquisition, Global New Material International officially established its strategic positioning as a “global new materials technology platform enterprise”. This is not a simple capacity expansion, but an elevation from manufacturer to technology platform operator.

SUSONITY is the most important strategic fulcrum of this upgrade.

9 months, what results has SUSONITY delivered?

The nine months from July 31, 2025, after the acquisition was completed, are the most vulnerable and critical window for any cross-border merger and acquisition. The pace of integration, the stability of personnel, the confidence of customers, the continuity of operations – every dimension is being tested.

In the nine-month consolidation test, SUSONITY delivered a solid answer  with data.

Factories: Full capacity across three continents

Gernsheim, Germany; Savannah, USA; Onahama, Japan.

The three names correspond to three continents, three regulatory systems, three labor cultures – and the same operating result: all at full capacity.

Among them, Gernsheim in Germany is the core production base and technology research and development center of SUSONITY. It houses the core Xirallic® and Iriodin® product lines and is a key node for deliveries to European customers.

The Savannah plant in the United States serves the North American market and maintains continuous and stable operations. The Onahama plant in Japan, deeply embedded in the Japanese automotive supply chain, is a core node for delivering to high-end customers in the Asia-Pacific region.

None of the three production sites have been shut down or slowed down.

Employees: Not reduction, but a net increaseOne of the most frequently asked questions after the merger: How many people have left SUSONITY?

The answer is: Actually, we now have more employees.

SUSONITY currently has a net increase in its global workforce before the merger.

Behind this is a series of specific consolidation measures. In December 2025 and February 2026, SUSONITY and CHESIR organized two rounds of cross-border team visits to promote mutual understanding in terms of corporate culture, working methods and technical language. In May 2026, the new “Innovation and Application Center” in Hochst, Frankfurt was officially opened – a new facility that sent a clear signal to the SUSONITY R&D team that investment continues and resource support for innovation has not been reduced.

A company that is laying off staff or in turmoil will not establish a new innovation center. A team with a continuous net outflow of talent will not continue to expand its technical expert team. Numbers don’t lie.

Market: 10+ global shows, with uninterrupted brand presence

In the nine months following the acquisition, SUSONITY participated in more than 10 top international industry exhibitions, covering markets in Asia, Europe and the Americas. Among them are:

CHINACOAT 2025 (Shanghai) – One of the world’s largest coatings industry shows. SUSONITY made a fresh appearance, sending a stable signal to the Chinese market.

PCHi 2026 (Hangzhou) – Asia’s most important personal care and beauty ingredients show. SUSONITY showcased cosmetic grade products such as Timiron®.

Every show is a public statement of brand continuity: We’re still leading the way.

In respect to market recognition, another figure is equally worth noting: In 2025, SUSONITY retained the title of Brazil’s best pigment supplier – this is the 18th consecutive year for this honor. In the first full operating year after the merger and acquisition, the industry’s reputation remained fully intact.

Synergy: Cross-selling has been gradually implemented

Strategic synergy must eventually translate into real business volume. SUSONITY and CHESIR’s four-round cross-selling program has completed two rounds so far:

Round 1 (since October 2025): Natural mica pearlescent pigments – CHESIR’s natural mica products are being exported to overseas markets through SUSONITY’s direct sales channels in Europe and the United States. The first batch of goods has been shipped.

Round 2 (since March 2026): Synthetic mica product line – Entering the second phase of advancement, covering a wider range of application scenarios and customer groups.

The third and fourth rounds are proceeding as planned.

While many merger and acquisition cases have synergy ideas that remain on paper, in SUSONITY, it has become a real flow of goods and customer delivery.

This is a response to those who concerned about the progress of the company’s integration. SUSONITY not only smoothly got through the initial difficulties of the integration but also moved forward steadily; It also made more people aware of this hidden powerhouse in the field of high-end materials, a technology platform that has a place in anti- euro banknotes counterfeiting, global top luxury automotive coatings, and high-end cosmetic pigments. It is a company that deserves to be recognized by more people.

This is the first article of the series. Next, we’ll share more stories about SUSONITY, a brand under Global New Material International, in areas such as production, talent, brand, and collaboration.

Nine months is not the end, but the beginning of moving forward together.

All the data in this article are sourced from the publicly disclosed documents of Global New Material International Holdings Limited (06616.HK) and the company’s official operating data.