In March 7, 2013, the German company CABB GmbH (CABB) and two domestic enterprises, signed the Memorandum of Understanding (MoU) to establish a joint venture company for the manufacturing and marketing of high-quality monochloroacetic acid (MCA) in Jining, Shandong Province. The two domestic enterprises are Jining Gold Power Co. Ltd (Jining Gold Power) and Jinwei Huasheng Chemical Co. Ltd (Jinwei Huasheng), according to the Herbicides China News 1303 issued by CCM in March.
The three companies will invest USD160 million (RMB1 billion) in a MCA project with a capacity of 50,000t/a. The whole project is to be divided into several stages. The first stage involves a 25,000t/a MCA expansion project that has been approved on March 1, 2013 by the Jining Environmental Protection Bureau. In addition to the original capacity, the extension will permit Jinwei Huasheng to reach a 45,000t/a MCA capacity after the first stage.
The MCA is an important chemical material used in the synthesis of a variety of products in food, personal care and agrochemical industries. In the herbicides industry, the MCA can be used to make various herbicides synthesis, such as 2,4-D, MCPA, imazosulfuron and glyphosate.
For CABB, this marks an important step both in its strategy to further regionalize its acetyls business and in its global production process. Dr. Martin Wienkenhöver, CEO of CABB said in the MoU: "We have found in Jining Gold Power a very strong partner for an important joint venture, supporting the new operation with a secure supply of key raw materials, electric power and professional services." Dr. Uwe Brunk, General Manager of Business Unit of Acetyls at CABB, added: "With the joint venture, CABB will take a place in the world's largest MCA market with reliable, superior-quality products that our customers are waiting for and reliable management and operation. We are thrilled to be able to support our customers' development."
On the joint venture plan, CABB will acquire the existing company Jinwei Huasheng, which currently possesses a capacity of 20,000t/a MCA. Then, CABB will be the majority owner of the joint venture, holding 67% of the shares. The remaining shares will be held by Jining Gold Power and Mr. Yan Donghua (Mr. Yan Donghua is a holder of Jinwei Huasheng). The joint venture will soon be able to supply high quality MCA with the existing facilities of CABB and it has also started to plan an expansion project to supply an additional 25,000t/a of high-quality MCA whose content reaches 99.9% with CABB's advanced proprietary technology.
Zuofei Xiao, Managing Director of Jining Gold Power and current Chairman of Jinwei Huasheng said: "We have found in CABB a leading international player in the MCA business and a recognized partner with a leading-edge technology. We are looking forward to strengthening the international collaboration in our industrial park in Yutai County." Mr. Donghua Yan, current General Manager of Jinwei Huasheng, added: "CABB's support will enable the joint venture to raise its technology to a new level and will help Jinwei Huasheng develop into a leading company for high-quality MCA in the Chinese market with activities and moves in the international market."
CABB is a global leading manufacturer of fine and specialty chemicals and customized products. It is specialized in dealing with corrosive materials and safely handling complex chemical reactions.
Jining Gold Power, founded in 2003, deals in coal, thermal power and chemical raw materials. At present, the company possesses a 30,000t/a caustic soda capacity. In 2012, its total revenue was over USD265.32 million (RMB1.65 billion). Jinwei Huasheng was invested by Jining Gold Powe and Mr. Yan Donghua in 2009.
Table Contents of Herbicides China News 1303:
Jiangsu Agro's 50,000t/a 2,4-D and 10,000t/a MCPA projects in progress
Vicome Lunan's 12,300t/a chloropyridines pesticides project in progress
Hubei Jiahe sets foot in the pesticide industry
Anhui Zhongshan completes its 3,000t/a herbicides TC projects
CABB invests in a 50,000t/a MCA project and sets up a joint venture with China firms
Cyhalofop-butyl market becomes gloomy in China
Sluggish clomazone market will go on in 2013
Diuron TC price below USD6,000/t in March 2013
Current situation of propanil in China
Pure pyridine price keeps increasing in early March 2013
Australia to levy the anti-dumping tax on Chinese 2,4-D
Export volume of glufosinate-ammonium product slipped slightly in 2012
Gansu Province's spring sown area in 2013 to reach 2.6 million ha
12 herbicides TC first registered by domestic companies in 2012
New registrations of herbicide technical in China in Feb. 2012
The Herbicides China News, a monthly publication issued by CCM on 15th, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.
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