In late of May,
the deputy chairman and the general manager of Beidahuang, the largest
agricultural enterprise in China, paid a visit to Kailin Group for inspection
and exchange. As a result, both parties signed a strategic cooperation
agreement for wider and profounder collaboration in the near future.
Xu Xueyang,
the general manager of Beidahuang, expressed that Kailin Group, as a large
phosphorus chemical enterprise in China, has not only made great contributions
to the modernization of Chinese agricultural industry, but also played an
important role in improving Beidahuang's agricultural production level as well
as increasing the production output.
According
to the agreement, both parties will expand their cooperation in the aspects of
self-operated products, finance, and trade. Beidahuang will provide food
products of high quality for Kailin Group, while Kailin Group will offer fertilizer
products and supply security in return. The both parties take great advantages
of each other in order to achieve their goals in a strategic cooperation.
Kailin Group and Wenfu Group to prepare for
integration
During the
conference, He Guangliang, the chairman of Kailin Group and Wengfu Group, revealed
that Kailin Group and Wengfu Group are preparing for integration.
According
to Mr. He, in order to promote the resource integration of the two leading
phosphorus chemical enterprises in China, improve the quality and effectiveness
of their development, and accelerate the modernization of the phosphorus
chemical industry in Guizhou, it is of great necessity for Kailin Group and Wengfu
Group to be integrated. By integration, both groups can complement each other
with their advantages, such as sharing market information, providing technical
support, optimizing product layouts, among others.
After the
reorganization, phosphogypsum, as a new building material industry of Kailin
Group, will become a new point of economic growth to increase its proportion of
comprehensive utilization. Meanwhile, the industrial chains of Kailin Group,
such as phosphorus, coal, fluorosilicon, and green building materials, will
create the effect of coupling induction and become an industry group, which is
aiming to bring benefits in the future for Kailin Group.
Insiders
speculate that both groups would probably come to merger and reorganization due
to the forum regarding a win-win collaboration held by both groups in June last
year. The same insiders already predicted that a merger of Kailin Group and
Wengfu Group could increase the production capacity of phosphate to about 18
million tonnes and fertilizer up to 11 million tonnes, becoming the first phosphate
rock-phosphorus fertilizer enterprise in China and the second of its kind in
the world.
Kailin Group is a major player in the worldwide
compound fertilizer market
Kailin
Group is a large modernized enterprise group with diversified industries, such
as mining, phosphorus chemical industry, coal chemical industry, chlor-alkali
chemical industry, fluorine chemical industry, silicon chemical industry, trade
logistics, building materials, and property service.
With
production capacity of 10 million t/a phosphate rock and 5.73 million t/a
fertilizer, Kailin Group has the second largest annual output of phosphate
fertilizer with high concentration in China, the fourth in the world. In great
demand all over the country, its products are also exported to Asia, America,
the Middle East, and Australia. Kailin Group is regarded not only as one of the
top three production bases of phosphate rock in China, but also a key
enterprise to the production of compound fertilizer with high concentration.
For more information about China's fertilizer
market, please have a look at our monthly newsletter Phosphorus Industry China Monthly Report.