Year 11 | 18 September 2019 | email@example.com
In the last issue, CCM International has listed eight main M&A cases took place in domestic pesticide industry in 2011. This kind of external expansion is considered to be the most important method for companies' expansion, based on CCM’s latest issue of Crop Protection China News.
In this issue, we will file the main cases of setting up subsidiaries by listed companies in 2011.
There were six listed pesticide companies having set up new subsidiaries in 2011. Most of the subsidiaries are totally owned by these listed pesticide companies.
1. On 31 Jan., 2011, Zhejiang Shenghua Biok Biology Co., Ltd. (Shenghua Biok), one of the leading abamectin manufacturers in China, released to expand its zircon business through setting up a new subsidiary, namely Zhejiang Gaogu Technology Co., Ltd. (Zhejiang Gaogu), aiming to diversify its main business and ease the dissatisfactory performance of pesticide business. The new subsidiary is mainly involved in the business of zircon with registered capital of USD7.6 million.
2. Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), a leading glyphosate player in China, released to set up two wholly-owned subsidiaries with total investment of about USD10.65 million on 3 March, 2011.
According to Zhejiang Wynca, the two companies were named as Zhejiang Wynca Venture Investment Co., Ltd. (Wynca Venture) with investment of about USD7.61 million and Zhejiang Wynca Import and Export Co., Ltd. (Wynca Import and Export) with investment of about USD3.04 million.
The former one is engaged in equity investment in innovative and high technology industry and the latter one is mainly involved in the import and export business of pesticides and chemicals.
3. On 25 April, 2011, Jiangsu Changqing Agricultural & Chemical Co., Ltd. (Jiangsu Changqing), a leading herbicide player in China, issued a notice of establishing a wholly-owned subsidiary with total investment of USD30.63 million (RMB200 million).
According to the notice, the wholly-owned subsidiary was named as Jiangsu Jinfeng Agricultural Technology Co., Ltd. (Jiangsu Jinfeng), which will be specialized in the production and sales of pesticides and chemicals.
4. Jiangsu Lanfeng Biochemical Co., Ltd. (Jiangsu Lanfeng), a leading producer of carbendazim and thiophanate-methyl (fungicides) headquartered in northern Jiangsu Province, announced on 30 May, 2011 that a wholly-owned subsidiary of it named Ningxia Lanfeng Fine Chemicals Co., Ltd. (Ningxia Lanfeng), with total investment of USD123.46 million, has got registered in Zhongshan City, Ningxia Hui Autonomous Region (Ningxia) on 27 May, 2011.
The construction of Ningxia Lanfeng, located in Meili Industrial Park of Zhongshan, was completed in Nov. 2011, with four projects divided into two stages. The first stage: 10,000t/a 1,2-diaminobenzene project and 5,000t/a 3,4-dichloroaniline project started in late 2011; the second stage: 20,000t/a cyanamide project and supporting public project to be launched in 2012.
5. Lianhe Chemical Technology Co., Ltd. (Lianhe Technology), a leading pesticide intermediate company in China, announced on 12 July, 2011 that it has set up a new pesticide intermediate subsidiary in Jiangsu Province, namely Yancheng Lianhe Chemical Technology Co., Ltd. (Yancheng Lianhe). It is mainly engaged in the production and sales of pesticide intermediates.
Yancheng Lianhe is co-founded by Lianhe Technology and Jiangsu Lianhe Chemical Technology Co., Ltd. (Jiangsu Lianhe), a holding subsidiary of Lianhe Technology, in June 2011 and Lianhe Technology who has invested USD1.56 million in the new subsidiary holds 90% of its equities. The rest 10% equities of the new company is held by Jiangsu Lianhe with investment of about USD172,798.
6. On 10 Oct., 2011, Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng), a listed pesticide player in China, released to set up a pesticide subsidiary, aiming to expand its business in fluorine industry.
The new company, named as Lianyungang Wuhuan Chemical Co., Ltd. (Wuhuan Chemical), is engaged in the production of fine chemicals such as fluorobenzene and some other fluorine products. The investment in the new company reaches USD3.14 million (RMB20 million), in which Jiangsu Huifeng invested USD2.83 million, accounting for 90% of its total equities. The rest capital was provided by an unrelated individual.
Source: Crop Protection China News 1202
by S. C.
07 february 2012, World News > Asia