In March 7, 2013,
the German company CABB GmbH (CABB) and two domestic enterprises, signed the
Memorandum of Understanding (MoU) to establish a joint venture company for the
manufacturing and marketing of high-quality monochloroacetic acid (MCA)
in Jining, Shandong Province. The two domestic enterprises are Jining Gold
Power Co. Ltd (Jining Gold Power) and Jinwei Huasheng Chemical Co. Ltd (Jinwei
Huasheng), according to Herbicides China News 1303 issued by CCM in March.
The three
companies will invest USD160 million (RMB1 billion) in a MCA project with a
capacity of 50,000t/a. The whole project is to be divided into several stages.
The first stage involves a 25,000t/a MCA expansion project. On March 1, 2013,
it has been approved by the Jining Environmental Protection Bureau. In addition
to the original capacity, the extension will permit Jinwei Huasheng to reach a
45,000t/a MCA capacity after the first stage.
The MCA is an
important chemical material used in the synthesis of a variety of products in
food, personal care and agrochemical industries. In the herbicides industry,
the MCA can be used to make various herbicides synthesis, such as 2,4-D,
MCPA, imazosulfuron and glyphosate.
For CABB, this
marks an important step both in its strategy to further regionalize its acetyls
business and in its global production process. Dr. Martin Wienkenhöver, CEO of
CABB said in the MoU: "In Jining we have found Jining Gold Power a very
strong partner for an important joint venture supporting the new operation with
a secure supply of key raw materials, electric power and professional
services." Dr. Uwe Brunk, General Manager of Business Unit of Acetyls at
CABB, added: "With the joint venture, CABB will take a place in the
world's largest MCA market with reliable, superior-quality products that our
customers are waiting for and reliable management and operation. We are
thrilled to be able to support our customers' development."
On the joint
venture plan, CABB will acquire the existing company Jinwei Huasheng, which
currently possesses a capacity of 20,000t/a MCA. And then CABB will be the
majority owner of the joint venture, holding 67% of the joint venture shares,
and the remaining shares will be held by Jining Gold Power and Mr. Yan Donghua
(Mr. Yan Donghua is one of holder of Jinwei Huasheng). The joint venture will
soon be able to supply high quality MCA with the existing facilities of
CABB and it has also started planning an
expansion project to supply an additional 25,000t/a of high-quality MCA whose
content reaches 99.9% with CABB's advanced proprietary technology.
Zuofei Xiao,
Managing Director of Jining Gold Power and current Chairman of Jinwei Huasheng
said: "We have found CABB a leading international player in MCA business
and a recognized partner with leading-edge technology. We are looking forward
to strengthening the international collaboration in our industrial park in
Yutai County." Mr. Donghua Yan, current General Manager of Jinwei
Huasheng, added: "CABB's support will enable the joint venture to raise
its technology to a new level and will help Jinwei Huasheng develop into a
leading company for high-quality MCA in Chinese market with activities and
moves in the international market."
CABB is a
globally leading manufacturer of fine and specialty chemicals and customized
products. It is specialized in dealing with and safely handling corrosive
materials and complex chemical reactions.
Jining Gold
Power, founded in 2003, deals in coal, thermal power and chemical raw
materials. At present, the company possesses a 30,000t/a caustic soda capacity.
In 2012, its total revenue was over USD265.32 million (RMB1.65 billion). Jinwei
Huasheng was invested by Jining Gold Powe and Mr. Yan Donghua in 2009.
Table Contents of Herbicides China News 1303:
Jiangsu Agro's
50,000t/a 2,4-D and 10,000t/a MCPA projects in progress
Vicome Lunan's
12,300t/a chloropyridines pesticides project in progress
Hubei Jiahe sets
foot in the pesticide industry
Anhui Zhongshan
completes its 3,000t/a herbicides TC projects
CABB invests
50,000t/a MCA project and sets up joint venture with China firms
Cyhalofop-butyl market
becomes gloomy in China
Sluggish clomazone
market will go on in 2013
Diuron TC price below
USD6,000/t in March 2013
Current situation
of propanil in China
Pure pyridine
price keeps increasing in early March 2013
Australia to levy
anti-dumping tax on Chinese 2,4-D
Export volume of
glufosinate-ammonium product slipped slightly in 2012
Gansu Province's
spring sown area in 2013 to reach 2.6 million ha
12 herbicides TC
first registered by domestic companies in 2012
New registrations
of herbicide technical in China in Feb. 2012
Herbicides China News, a monthly publication issued by CCM on 15th,
provides you with the latest occurrences, exclusive analysis on the market
trend as well as professional reviews on competitiveness of companies, products
and relative industries in China
CCM is dedicated to market research in
China
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com
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