Shandong Dongyue Polymer Material Co., Ltd. purchases 100% stock rights of Shandong Huaxia Shenzhou New material Co., Ltd.

On Jan. 25, 2013, Dongyue Group Ltd. (Dongyue Group) announced that its wholly-owned subsidiary Shandong Dongyue Polymer Material Co., Ltd. had invested USD94.67 million to purchase 100% stock rights of Shandong Huaxia Shenzhou New material Co., Ltd. (Huaxia Shenzhou) located in Dongyue International Fluorine and Silicon Material Industry Park.
 
According to the announcement by Dongyue Group, it will finish the payment by cash. The first part of payment is the front money of about USD16,000 and it would be paid within 10 working days from the signing date of equity transfer agreement. The rest payment of about USD94.65 million will be paid in the delivery date.

Dongyue Group is the main company in the Dongyue International Fluorine and Silicon Material Industry Park, which is the first fluorinated material base in China. During the 20 years' development, the company has established a hi-tech product line of fluorine and silicon material with new environmental protection, new material and new energy. After purchasing Huaxia Shenzhou, it's believed that the scope of business in Dongyue Group will further expand soon.
 
Currently, Huaxia Shenzhou mainly concentrates on the production and sales of various downstream refined products containing fluorine polymer. Its main products keep about 40% market share in China. What's more, Huaxia Shenzhou also has a number of patented technologies in many fields including high-end fluorine resin and other polymer material containing fluorine.

China Fluoride Materials Monthly Report is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of Fluoride Materials market dynamics, analyze the market data and trends. Major columns include the sectors on policy & legislation, company dynamic, supply & demand, price update, etc.

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As a leading market research consulting company in China with more than 10-year-experience, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.
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Global Sweeteners Acquires Equity Enterests in HFCS from Cargill

On 30 March 2012, Global Sweeteners Holdings Limited (Global Sweeteners) announced that it has signed a sale and purchase agreement with Cargill, Incorporated (Cargill) to acquire 50% equity interest in Global Bio-chem-Cargill (Holdings) Limited (Global Bio-chem-Cargill, a subsidiary of Cargill) and 10% equity interest in GBT- Cargill High Fructose (Shanghai) Co., Ltd. (GBT- Cargill) from the latter, with a total investment of USD4.2 million. In fact, GBT- Cargill was established in 2001 as a joint venture of Global Sweeteners and Cargill and it is engaged in producing F42. Upon the completion of the acquisition, these two companies will both become wholly-owned subsidiaries of Global Sweeteners, which will help Global Sweeteners to strengthen its operational efficiency and develop its high fructose corn syrup (HFCS) business, according to CCM’s May issue of Sweeteners China News.

The following reasons are mainly responsible for Global Sweeteners’ acquisition. Firstly, it’s the increasing market demand for HFCS that drives the company to acquire equity interests in HFCS companies. HFCS has been widely used in the food and beverage industry. Especially because of the surge of sucrose price in China since 2011, many food and beverage companies have switched to other sweetening ingredients and HFCS is considered to be a good substitute for sucrose. HFCS tastes better than sucrose and its sweeteness will increase with the drop of temperature. Besides, it costs less than sucrose does as a food additive. Therefore, the strong demand for HFCS drives Global Sweeteners' acquisition. In fact, to meet the huge demand from China’s food and beverage sector for sweetener products, except its previously existing F42 (F42 and F55 are two main kinds of HFCS) production facility in Shanghai, the company had also constructed a new F55 production line with capacity of 100,000t/a in the same production site and the construction was completed in Oct. 2011, and thus Global Sweeteners’ capacity of HFCS was up to 220,000t/a.

 

Secondly, Global Sweeteners acquires HFCS companies in order to improve its product structure. In view of Global Sweeteners, the HFCS joint venture with Cargill was a success and had helped Global Sweeteners and Cargill to pioneer in China’s HFCS market. However, F42 business of Global Sweeteners didn’t perform well, and its gross profit fell from USD2.5 million in 2010 to USD 1.4 million in 2011. Besides, F55 is used more and more widely and many users are switching to F55. In consideration of this, Global Sweeteners revealed that it is considering a range of options to revamp the existing F42 facilities, in order to either complement other production lines or to adjust its product structure.

 

Thirdly, the acquisition will increase Global Sweeteners’ cash level. According to the announcement, as of 29 March 2012, Global Bio-chem Cargill and GBT- Cargill have tangible assets of about USD4.4 million with no interest-bearing bank borrowing. The total cash balances in above two company amounted to about USD14.1 million while Global Bio-chem Cargill has dividend payable to Cargill which amounts to USD2.6 million. Thus directors of Global Sweeteners believe that the agreement will not only strengthen the management flexibility over the production planning, but also increase the company’s cash level.

According to Mr. Kong, the chairman of Global Sweeteners, the termination of the joint venture agreement will free the company to develop HFCS business according to its own strategies and at its own pace. Moreover, the sales and purchase agreement will enable the company to have full control over the F42 plant, which will allow it to better utilize the production facility and strengthen the operational efficiency upon the completion of the agreement.

Source: Sweeteners China News 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1205:

Output of Chinese food additives reaches 7.62 million tonnes in 2011

Nanning Sugar encounters net profit loss in Q1 2012

Annual National Conference of Sucrose 2012 held in Yunnan

Global sugar surplus to exceed 6 million tonnes

Food additive glycyrrhiza may withdraw from Chinese market

Shandong Longlive declares long-term development strategy

High concentration may promote China's sucralose industry in 2012

Saccharin facing possible elimination in China

Mogroside may become second most popular natural sweetener

Market overview of China’s HFCS till April 2012

Opinion solicitation for national standards of three sugar alcohols ongoing

Cyclamate industry impervious to food safety incidents

Sorbitol expansion of Tongchuang Biotechnology to complete in H2 2012

Crystalline fructose to be Xiwang Sugar's key development focus

Global Sweeteners acquires equity interests in HFCS from Cargill

… …

If you are interested in CCM International’s March issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

(Guangzhou China, May 7, 2012)

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1065.html

Domestic Pesticide Market Remains Depressed

Statistics from National Bureau shows that China's pesticide output reached 1.92 million tonnes in Q1-Q3 2011, up 15.7% compared with that at the same period last year. Pesticide output in the whole year of 2011 is predicted to reach about 2.5 million tonnes. Although the amount of pesticide output and sales volume in 2011 is predicted to increase to a certain extent, domestic pesticide industry still seems to be trapped in downturn.

According to the 2011 Q3 financial reports of all the listed pesticide companies in China, net profit of Q1-Q3 in 2011 only reached USD100.66 million, down 32.28% compared with that at the same period last year.

Overcapacity is still considered to be the main reason for the depressed domestic pesticide market. At the beginning of 2011, although insiders have ever predicted that domestic pesticide industry may recover in 2011 due to the prediction of price increase of raw materials, the intense competition and lagging price increase of pesticides have made the industry remain in downturn.

Cracking down and standardizing the chaotic pesticide industry, creating orderly production, investing more in new pesticide R&D, etc. are considered to be good ways to ease the downturn in domestic pesticide industry. Unfortunately, things can’t be changed easily. The severe overcapacity problem in China might still hinder the development of domestic pesticide industry in the next few years.

All findings are from CCM International’s Crop Protection China News. If you are interested in this newsletter, please feel free to contact us.

Specific Headline News of Crop Protection China News 1123:

-According to the performance of domestic listed pesticide enterprises in Q1-Q3 2011, the recovery of domestic pesticide industry has not been realized yet. Overcapacity is still the main reason to drag domestic pesticide industry in downturn.

-Some large agrochemical companies in China have encountered troubles in their business due to the implementation of chain store operation mode, which may be the common difficulties for most of them in China.

-An international press conference, held by Bayer AG in Shanghai on 16 Nov., 2011, declared its expansion plans in Asia in the next four years.

-As more pesticide enterprises in China started to register for nitenpyram formulation and technical production, nitenpyram market is predicted to have an upward trend in the coming years.

-High price of toosedarin insecticides impedes its large promotion in China.

-Registration of the first coumoxystrobin mixed formulation, namely coumoxystrobin·tebuconazole 40% SC, will be approved by the Ministry of Agriculture in 2012.

-CMST released the 12th Five-Year Plan of Biotechnology Development (2011-2015) on 28 Nov., 2011 aiming to better support the development of biotechnology.

-46.7 million ha. arable land in  suitable region in China would be subsoiled again till 2015, trying to enter farming cycle "subsoil the same land once every three years".

-There are some emerging corn pests and diseases beginning to spread in 2011, while proxenus lepigone among them broken out is not an original corn pest.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_919.html

Domestic Pesticide Industry Continues Downturn

According to the data from National Bureau of Statistics, China's pesticide output reached 1.92 million tonnes in Q1-Q3 2011, up 15.7% compared with that at the same period last year. Pesticide output in the whole year of 2011 is predicted to reach about 2.5 million tonnes and domestic demand may reach 308,000 tonnes, based on CCM’s latest issue of Crop Protection China News.

Although the amount of pesticide output and sales volume in 2011 is predicted to increase to a certain extent, domestic pesticide industry still seems to be trapped in downturn.

According to the 2011 Q3 financial reports of all the listed pesticide companies in China, including 20 listed companies that mainly engaged in pesticide production and sales, total revenue of these companies reached USD4.07 billion in Q1-Q3 2011, up 24.07% compared with that at the same period last year. However, the net profit in this period on the other side witnessed slide, reaching USD100.66 million, down 32.28% over Q1-Q3 2010.

Overcapacity is still considered to be the main reason for the downturn of domestic pesticide industry. At the beginning of 2011, although insiders have ever predicted that domestic pesticide industry may recover in 2011 due to the prediction of price increase of raw materials, the intense competition and lagging price increase of pesticides have made the industry remain in downturn.

Domestic pesticide output gradually has surged in recent years, but the domestic demand accounts for merely 1/8 of the total output. As an export-oriented country in pesticide industry, China has a large amount of pesticides exported to oversea market every year. In Q1-Q3 2011, China has accumulatively exported 594,200 tonnes of pesticides, consisting of 158,100 tonnes of insecticides, 377,200 tonnes of fungicides and 58,900 tonnes of herbicides.

Adding up the pesticide amount consumed by domestic market and the export volume, a large amount of pesticides remain in dull sale condition. Aiming to maximize interests and further seize the market share, most of domestic pesticide companies still have the competitive ability to expand the capacity of their products. So far, some pesticides, such as glyphosate, imidacloprid, abamectin and acetochlor, have suffered from serious overcapacity in China.

Glyphosate, an effective herbicide but with tragic destiny in China, is always mentioned when talking about pesticide overcapacity in China. Domestic glyphosate capacity reaches over 720,000t/a in 2011, but the output is predicted to be 300,000 tonnes to 350,000 tonnes. With dim consumption capability in oversea market and low consumption amount in domestic market, downturn of domestic glyphosate industry continues in 2011. Performance of some main glyphosate manufacturers in China mirrored the downturn in Q1-Q3 2011, such as Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. and Anhui Huaxing Chemical Industry Co., Ltd.

Acetochlor, a herbicide used in large dry farmland, also faces overcapacity this year. Its total capacity reaches 140,000t/a in 2011, but only 10,000 tonnes and 20,000 tonnes are consumed in domestic market and oversea market respectively.

Business of products like imidacloprid and abamectin are even more difficult in China in 2011. Serious product homogenization, overcapacity and impact from foreign products such as chlorantraniliprole have made enterprises face even larger pressure.

At present, pesticide export is still considered to be an efficient way to ease the overcapacity pressure in China. However, fundamental problems can't be solved by only depending on pesticide export. As more and more high-level pesticides with low toxicity and residue, and improved pesticide effect developed by foreign pesticide giants, the pesticide demand in oversea market will indirectly decrease. Cracking down and standardizing the chaotic pesticide industry, leading to orderly production, more investment in new pesticide R&D, etc. are considered to be good ways to ease the downturn in domestic pesticide industry. Unfortunately, it is more easier said than done, and serious overcapacity in China may still continue in the next few years.

Source: Crop Protection China News 1123

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1123:

Domestic pesticide industry continues downturn

Chain operation mode in agrochemical field faces challenge in China

Bayer CropScience to expand in China

China's nitenpyram market predicted to have an upward trend

High price impedes promotion of toosedarin insecticides

Registration of coumoxystrobin·tebuconazole 40% SC to be approved in 2012

Policy to further support bio-pesticide

China plans to subsoil 46.7 million ha. arable land again in suitable region till 2015

New corn diseases and insect pests increase in 2011

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_903.html