On June 16th, Sinofert Holdings (HK 00297) and Pingyuan County Economic Development and Investment Corporation held a signing ceremony to celebrate the restructuring of Shandong Deqilong Chemical Industry Company Limited, which was renamed as Sinochem Pingyuan Chemicals Co. Ltd. (Sinochem Pingyuan Chemicals). According to the agreement, Sinofert acquired an aggregate of 75% of the equity interests of Shandong Deqilong at a total consideration of approximately RMB730 million and Pingyuan County Economic Development and Investment Corp. held 25% of the interests. 

The acquisition has a significant effect in complementing the two shareholders’ strengths in technology, management, market and capital and reinforcing Sinofert’s strategy for nitrogen products and diversifying the profit structure of the group. Upon completion, Sinochem Pingyuan Chemicals has become the first nitrogen production platform of the Sinofert group having an annual production capacity of over 1 million mt, in addition to the 300,000 mt/a capacity of Jilin Changshan Urea, the 600,000 mt/a capacity of Tianji Sinochem Gaoping Urea. Now Sinofert’s urea production capacity has exceeded 2 million mt and become one of the major domestic nitrogen producers.