Huapont plans to increase fund raising for pesticide-oriented business

Date:03-27-2012

Huapont, a Chinese pharmaceuticals manufacturer, made a fund raising announcement on 23 March for an amount of no more than RMB920 million Yuan, of which RBM 580 million Yuan will be invested in pesticide-oriented business including establishment of a new R&D facility and pesticide technical&formulation project.

Technical service, including industrialization of technical achievement and GLP testing/analysis, has been always Huapont’s key source of income and profit, as well as its core competitive edge. In 2010 Huapont’s income of technical transfer and technical service reached RMB35.37 million Yuan, same arrived at over RMB40 million Yuan in 2011. Furthermore Huapont plans to make an investment of RMB300 million Yuan in a new R&D facility so as to expand its technical service. The new investment project will be carried out in 2 years’ time, to be implemented by Huapont’s wholly owned subsidiary -- Beijing Nutrichem International Trading Co., Ltd.

An amount of RMB280 million Yuan of Huapont’s raised fund is planned for spending on the 600 tons/year azoxystrobin, the 900 tons/year mesotrione and the 3,500 tons/year pesticide formulation projects, to be implemented by Shangyu Nutrichem Fine Chemicals Co., Ltd.

According to Huapont, these pesticides are of new pesticide crude or formulation, which will be high efficient and low toxic residue; the new establishment is expected to further enhance the sales volume and profitability of Huapont’s pesticide crude and formulation businesses.

At the end of last year, Huapont Brazilian company CCAB AGRO S.A. (Sao Paulo) entered into an agreement that Huapont will make an equity investment of $20 million in CCAB to gain 7.5% of CCAB shares (AgroNews 2011-12-12).