Thursday, April 26, 2012

Leading Phosphorus Enterprises Rushing Area of Fluorine Through Alliance

For the first time, China’s two leading phosphorus enterprises decided to step into the business of phosphorus-fluorine integration through a strong alliance, according to CCM International’s April issue of Phosphorus Industry China Monthly Report.

On Apr. 5th, 2012, Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa) and Wengfu (Group) Co., Ltd. (Wengfu Group) launched their third cooperation since they signed a framework cooperation agreement in Nov. 2011 (the details see page 8 issue 5, Vol.1: Hubei Xingfa joints hands with Wengfu for complementary advantage). As China’s two leading phosphorus enterprises, they would jointly develop and utilize accompanying resources (fluorine resources) in phosphorus ore. 
In accordance with the announcement issued by Hubei Xingfa, it will combine Wengfu Group to set up a 51:49 joint venture named Hubei Wengfu Lantian Chemical Co., Ltd. (Wengfu Lantian), through their respective holding subsidiary. With the investment of USD15.85 million in total, Wengfu Lantian will be mainly dedicated to the production and sales of fluorine products. Nevertheless, Wengfu Group and Hubei Xingfa are still negotiating the details of this cooperation.

Since the concept of phosphorus-fluorine integration was put forward in China, both phosphorus enterprises and fluorine enterprises have been keeping keen eyes on the accompanying resources in phosphorus ore. Also the China Government encourages relative projects out of effective resources utilization. Meanwhile, there are already some enterprises involved in this business—recovering fluorine resources from phosphorus ore to produce fluorine chemicals.
For now, there are four leading phosphorus enterprises engaged in phosphorus-fluorine business in China, including Hubei Xingfa (the details regarding other three leading phosphorus enterprises which are involved in this business see page 2 issue 2, Vol. 2: Guizhou phosphorus enterprises lead phosphorus-fluorine integration). In the meantime, Do-Fluoride Chemicals Co., Ltd. (Do-Fluoride Chemical)—an listed fluorine enterprise has also cooperate with Yunnan’s phosphorus mining enterprises to develop the fluorine resources contained in phosphorus ore early in 2011.

Relatively speaking, the cooperation among domestic phosphorus giants has impressed phosphorus and fluorine industry to a greater extent than previous projects of phosphorus-fluorine integration invested by any other enterprise. After all, Hubei Xingfa has years of experience in production and marketing of fine chemical, while Wengfu Group has mastered mature technology in recovering fluorine resources from phosphorus ore.
Source: Phosphorus Industry China Monthly Report 1204

Content of Phosphorus Industry China Monthly Report 1204:
Phosphorus Ore
Company Dynamics: YPC to have largest flotation capacity in China  
Industry Dynamics: Leading phosphorus enterprises rushing area of fluorine through alliance
Policy & Legislation: Guiyang MIITC to set up new scheme for phosphorus mining
Yellow Phosphorus
Policy & Legislation: Energy saving in yellow phosphorus industry to surge in China
Phosphate Fertilizer
Company Dynamics: Yuntianhua to obtain injection of phosphorus business
Industry Dynamics: Increasing sulfur cost swallows Hubei Yihua’s DAP profit  
Industry Dynamics: Limited new phosphate capacity to be released in 2012
Industry Dynamics:Yunnan promotes more phosphorus cooperation with Vietnam
Fine Phosphate Chemical
Company Dynamics: Domestic STPP producers need to seek for their own future  
Company Dynamics: Hubei Xingfa increases capital investment in phosphorus business
… …

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.

(Guangzhou China, April 16, 2012)
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