June 12, Mr. Feng Zhibin, Vice President, Sinochem Corporation signed an Agreement on the Capital Increase into Zhejiang Petrochemical Construction Materials Group with the State-owned Assets Supervision and Administration Commission of Zhejiang Province (Zhejiang SASAC).   

In respect of the Agreement, Sinochem would increase its equity interests in Zhejiang Petrochemical Construction Materials Group to 51% by paying cash and injecting assets, and therefore become the majority shareholder of the latter. Established in August 2000, Zhejiang Petrochemical Construction Materials Group was wholly owned by Zhejiang SASAC and has been growing the businesses on fluorine chemicals, pesticide, real estate and pharmaceutical distribution. In its fluorine chemical unit are included China’s only ODS Replacement Process Research Center and Zhejiang Fluorine Chemicals Process Research Center. Its pesticide plant serves as Zhejiang site in the center of South China’s pesticide formulation base.   

Mr. Feng addressed in the signing ceremony that Sinochem Corporation would accelerate its strategic efforts to mobilize resources, research facilities, production, marketing and sales of the fluorine chemicals to Zhejiang Province and make Zhejiang Petrochemical Construction Materials Group a fluorine chemicals industry leader with a full-fledged industrial chain, strong research capabilities, advanced management and sharper competitive edge.