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Kingenta fund-raising $326 million to layout new projects

Kingenta Ecological Engineering Group recently released that the company has raised $326 million through non-public stock offering from 8 specific investors to launch three projects, which include $200 million for the production of 600,000 tons of nitro-compound fertilizer and 400,000 tons of water-soluble fertilizer, $70 million for establishing agchem service center, and the rest for circulating funds.

The completed production projects will greatly improve the situation of serious shortage of fertilizers in the southern area of China during the sales season, and rapidly increase the market share of Kingenta. The agchem service center will be used as a platform for big data processing, on-line exhibitions and transactions, which also includes 100 regional service center located in 14 provinces. The regional service center will have support from Kingenta’s agchem experts, as well as those agronomists in the counties.

In China, novel fertilizer develops rapidly, and has more space to develop than traditional fertilizers. Kingenta explains that this investment is a sign of market model transfer for the company, being from “product oriented” to “product and service oriented” to boost market core competence of its novel fertilizers.