Chinese agrochemical company Nantong Jiangshan Agrochemical & Chemicals announced on August 11, the progress of a restructuring program, which aims to acquire all the equity in Fuhua Tongda being held by its shareholders, via the issue of shares and payment in cash.
After completing the transaction, Jiangshan will hold 100% stakes in Fuhua Tongda.
Jiangshan says that the transaction will enable consolidation of resources in western China and Eastern China, adjustment of industry deployment and regional business deployment. Through the transaction, Jiangshan will hold an annual capacity of no less than 295,000 tons. Fuhua Tongda has shaped a manufacturing base covering the whole industrial chain of glyphosate.
Jiangshan is engaged in the production of pesticides including herbicides and insecticides, chemical products such as special chemicals, chemical intermediates, chlor alkali and new materials, as well as cogeneration-related steam. The company owns glyphosate with the technical capacity of annually 70, 000 tons, of which glycine-based capacity is 30,000 tons and IDAN-based capacity is 40,000 tons.
Overlapping production exists in Fuhua Tongda and Jiangshan, as they are both engaged in the production of glyphosate. At present, glyphosate is one of the most widely used herbicides in the world. Fuhua Tongda and Jiangshan are both leading manufacturers in the glyphosate industry. Fuhua Tongda has an annual glyphosate capacity of 153,000 tons while Jiangshan has the capacity of 70,000 tons. After the consolidation of the two companies, its glyphosate capacity will reach 223,000 tons annually, which will rank first in the Chinese industrial sector. The capacity will account for more than 20% of the global capacity, enabling the company to become the second-largest glyphosate supplier in the world, which places the company in an even more important position in the global agrochemical market.
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