Sinochem International Corporation invests $156.6 mn to integrate agchem business
The listed company Sinochem International Corporation, a subsidiary of Sinochem Group, recently announced that it plans to acquire all the agchem businesses share of Sinochem Group subsidiaries, including Sinochem Agro Ltd., Shenyang Sciencreat Chemicals Ltd., Sinochem Agro Hongkong Ltd., Sinochem Agro Do Brazil Ltda., Sinochem Agro Argentina SA. This acquisition will be operated through Sinochem International’s wholly-owned subsidiary Sinochem Crop Protection, with accumulative investment of yuan 970 million ($156.6 million at the current rate).
Upon the completion of this acquisition, all the agchem businesses assets of Sinochchem Group, except Shengyang Research Institute of Chemical Industry, will be integrated into Sinochem International Corporation. However, Sinochem Group released it plans to finalize in 12 months the integration of Shengyang Research Institute of Chemical Industry into Sinochem International.
Sinochem Group noted that the reorganization of agchem business avails to reduce competition within the group, give full scope to integrated advantages, and raise the group’s marketing competitiveness. In 2013, the agchem sales of Sinochem Agro Ltd was yuan 1,857 million, while it was yuan 1,305 million for Sinochem International Corporation. According to the ranking of “Top 20 Chinese Agrochemical Firms”, after the reorganization, one would assume that the agchem business of Sinochem International Corporation will have the potential to be ranked in the near future.
Sinochem International Corporation is a large state-owned holding company engaging in natural rubber, fine chemicals, agrochemicals, chemical logistics, chemical distribution, and other sub-sectors international chemical business. The corporation holds 29% share of Nantong Jiangshan Agrochemcial & Chemcial Ltd., and 40.5% share of Jiangsu Yangnong Chemical Group Ltd., both are leading glyphosate manufacturers in China.
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