AgroPages-ABACHEM to make private placement for USD158.0 million-Agricultural news

By Think Real - On 30 June, 2016, ABA Chemicals Corporation (ABACHEM) noted a plan to make a private placement, to issue <= 200 million shares for <=USD158.0 million. Accordingly, the sum is aimed at constructing new production lines, establishing R&D centre, developing new products, supplementing working capital and paying for bank loans.

Specifically, USD84.2 million is for new production lines. Currently, the company has production lines under construction in 3 bases respectively located in Nantong and Taicang cities and Binhai county. The fund is to be divided into 3 parts, USD60.2 million for Nantong base, USD12.0 million for Binhai base and USD12.7 million for Taicang base. In particular,

² Nantong base – an intermediate production line which is being constructed by ABA Chemicals (Nantong) Limited, products including intermediates for chlorantraniliprole and SDHI (= succinate dehydrogenase inhibitor) fungicides

² Binhai base – a pesticide and chemical production line which is being carried out by Jiangsu Jiannong ABA Agrochemical Co., Ltd., products being triazole pesticides (incl. flutriafol, tebuconazole and simeconazole)

In regard to the new product R&D project, it is targeted at pharmaceuticals and pesticides. Particularly in the R&D of pesticide intermediates, ABACHEM chose bromoacid (an intermediate for chlorantraniliprol) and 2-(trifluoromethyl)benzene sulphonamide (TBSA, a key intermediate for new herbicide tritosulfuron) for development and process optimisation. This is mainly because chlorantraniliprol is the bestseller in the global pesticide market and tritosulfuron is a new product developed by BASF, both boasting broad market prospects.