October 17, 2011 Makhteshim Agan
Makhteshim Agan and ChemChina Complete Merger
Historic Transaction Realizes MAI’s Vision to Create a Global
Powerhouse in Crop Protection Solutions
Makhteshim Agan Group (MAI) , the world leader in branded off-patent crop
protection solutions, today announced that 60% of its
shares have been acquired by China National Agrochemical Corporation, a
full subsidiary of China National Chemical Corporation (ChemChina). ChemChina is
one of the top 500 companies in the world and the largest chemical producer in
China. The closing occurred following the satisfaction of several closing
conditions, including approval of the transaction by MAI shareholders and
European, US and Brazilian anti-trust authorities. As of today, MAI becomes a
private company, 60% of which is owned by ChemChina, and
40% by Koor Industries Ltd., part of the largest Israeli holding company - IDB
The merger between MAI and ChemChina is the largest transaction ever concluded
between a Chinese and an Israeli company, and represents a significant milestone
in MAI’s 66-year history. The transaction process was led by Mr. Ren Jianxin
chairman of ChemChina and Mr. Nochi Dankner chairman of IDB Group. The merger
will create a platform that is optimally suited to the changes in the global
agrochemical industry, while positioning MAI to tap the opportunities inherent
in these changes.
Based on the desire of both shareholders, MAI’s existing management team will
continue to lead the Company, and its headquarters will remain in Israel. The
Company intends to continue operating all of its existing global manufacturing
facilities. In parallel, it will seek to capitalize on its strong base in China
to further expand its global infrastructure and its ability to offer the
industry’s leading portfolio of crop protection solutions.
About Makhteshim Agan Group
Makhteshim Agan Industries Ltd is a leading manufacturer and distributor
worldwide of crop-protection solutions and the largest off-patent player in the
sector. The Company supplies efficient solutions to farmers that assist them in
combating disease and increase yields. In 2010 the Company’s sales revenues were
over USD 2.37 billion, and it is ranked number 7 in the world agro-chemicals
sector. The Company is characterized by its know-how, high-level
technological-chemical abilities, expertise in product registration, and
observance of strict standards of environmental protection, stringent quality
control and global marketing and distribution channels. For more information
visit us at www.ma-industries.com
transfers $2.4B for Makhteshim merger
Sale performed through Bank Hapoalim.
Public shareholders to receive $1.272 billion; Koor to receive $1.128
billion, expected to pocket net profit of as much as NIS 675 million from
The deal for the merger of ChemChina and
Makhteshim Agan has been completed. Calcalist has learned that ChemChina has
transferred $2.4 billion to Israel, of which $960 million are a loan to Koor,
which will receive an additional $168 million for 7% of its shares in the
The remainder of the proceeds – $1.272
billion – will go to the company’s public shareholders.
The entire payment has been transferred
to Bank Hapoalim, which will hold the money in trust for the next few days.
The closing agreement was made in Bank Hapoalim as well, and upon the
finalization of the deal Makhteshim Agan and IDB Group, controlled by Nochi
Dankner, together with ChemChina, the Chinese national chemical corporation,
issued an official statement of the deal’s finalization.
Makhteshim Agan has also announced that
it purchased the stock options of 130 of its employees as a prerequisite for
the merger. Once the deal reached its final stages, Makhteshim was required
as a prerequisite to the finalization of the deal to cancel all of the stock
options held by its employees and executives.
The company will pay more than 130
employees and executives who held stock options NIS 73 million (about $20
million), of which NIS 16 million ($4.4 million) will be pocketed by
Makhteshim CEO Erez Vigodman.
Makhteshim President and CEO
Asia-Pacific, Africa & Middle East Ran Maidan will receive NIS 4.3 million
($1.18 million), and director of Global Resources and Corporate Development
Chen Lichtenstein will pocket NIS 3.1 million ($850,000).
Koor announced that as a result of the
deal, the company will post a NIS 582-674 million ($160-185 million) net
profit for the fourth quarter of 2011, as well as an equity increase of NIS
655-747 million ($180-205 million).
IDB Chairman Nochi Dankner commented upon
the deal’s completion, “The finalization of the strategic partnership
agreement between ChemChina and IDB Group regarding Makhteshim Agan is an
important milestone in IDB’s aspirations for global expansion and in the
development of its global presence with a focus on China.
"The deal with ChemChina is an important
step for IDB Group and Israel’s industry, and we believe it will be
instrumental in forging economic relations between Israel and China – a
country which is the main growth engine of the world’s economy.
"During a fascinating year of
negotiations, I had the privilege and honor of working closely with my good
friend Mr. Jianxin Ren, chairman of ChemChina, who is a leader with unique
wisdom and business insight. He is an entrepreneur, a gifted negotiator and
an individual with ideals who always sees the big picture while at the same
time fully controlling the small details.
"We forged a particularly close friendship
which contributed to the excellent cooperation between the ChemChina and IDB
teams lead by Discount Investments President Ami Erel who with great
intelligence helped lead the deal to it successful completion.”
Jan 19 2012 Reuters
US to probe imports of China, Vietnam wind towers 風力発電タワー
* US producers warn of plant closings
* Chinese wind tower makers opposes U.S. probe
* Siemens says duties not warranted
* ITC to vote next month on case
The U.S. Commerce Department said on Thursday it was launching an investigation
that could lead to steep import duties on more than $100 million worth of
wind energy towers from China and Vietnam.
The decision adds to the friction in clean energy trade between the world's two
The Commerce Department is already investigating charges that Chinese solar
panel makers engage in unfair trade practices and will issue a preliminary
decision on duties next month.
The Wind Tower Trade Coalition, a group of
U.S. producers, had previously said it was asking for anti-dumping duties of 64
percent on imports from China and 59 percent from Vietnam . .
But in its announcement, the department said China was alleged to undercut U.S.
wind tower prices by nearly 214 percent and Vietnam by 141
to 143 percent.
Some Chinese makers of wind towers said on Thursday they oppose the charge.
"We are talking to the China Commerce of Ministry about this," said Wang Debao,
a vice-director at Chengxi Shipyard Co, whose wind tower business made up nearly
10 percent of its annual revenue which exceeded $1 billion last year.
"We are hiring lawyers to challenge the allegations," said Wang, whose company
is a unit of China State Shipbuilding Corp.
Other Chinese wind tower makers Titan Wind Energy (Suzhou) Co and Shanghai
Taisheng Wind Power Equipment also expressed concerns, saying any anti-dumping
duties by the U.S. could hurt prospects in a growing market.
U.S. producers also want additional countervailing duties on wind towers from
China to offset alleged government subsidies, despite a recent U.S. court ruling
that struck down the use of such duties against "non-market economies" like
A separate U.S. government agency, the International Trade Commission, held a
hearing on Thursday to probe whether U.S companies have been materially harmed
or threatened by the imports. The panel will vote next month on whether there is
enough evidence of harm for the case to proceed.
SHUT OUT OF SHEPHERDS FLAT
Imports of the wind towers from China and Vietnam were an estimated $103.6
million and $51.9 million, respectively, in 2010. The towers, which can stretch
more than 100 meters into the air, are made of individual pieces assembled on
site. They support the blades and housing for the wind turbines.
Kerry Cole, president of Trinity Structural Towers, said domestic producers
suffered a severe blow when they were shut out of the 338-tower Shepherds Flat
project in eastern Oregon, which is due to be completed next year and is billed
as the world's largest wind farm.
"All of it went to China ... This lone lost sale had ripple effects throughout
the industry ... After losing this sale, domestic producers were desperate to
fill their order books," putting them under tremendous pressure to cut prices,
U.S. producers will continue to face "reduced business volumes, margins and
reduced profits" unless the United States slaps duties on imports from China and
Vietnam, Michael Barczak, vice president of sales for DMI Industries, told the
"Current production levels are low and because of imports are not projected to
improve in future years. If these trends continue, a number of domestic
producers will have to shut down plants or consolidate production," Barczak
U.S. SUPPLIERS "UNRELIABLE"
Lawyers representing Chinese and Vietnamese producers, as well as the U.S.
operations of German manufacturing giant Siemens, argued that demand for wind
towers was driven by more than just price.
For wind projects near the coast, it can be cheaper to import towers from Asia
than to buy from a U.S. manufacturer and ship them across the country by rail,
said Christopher Hauer, director of Siemens tower operations in the United
It also is critical manufacturers supply towers on time and to the
specifications Siemens needs, Hauer said.
"Domestic manufacturers have proved themselves unreliable
and unwilling often to provide supply. Siemens can not afford to be left
without supply alternatives," he said.
Max Schutzman, an attorney representing Chinese and Vietnamese producers, said
petitioners offered "no real evidence" that they had been materially injured or
threatened with material injury by the imports.
Chinese and Vietnamese producers have grabbed sales because of their
"reliability, capacity, track record and their ability to
deliver in a timely fashion," Schutzman said.
"Wind towers are typically 10-15 percent of all-in project costs so, if tariffs
are imposed, this will be negative for companies in wind farm investments," said
research partner Felix Fox at equity research Ji Asia.
China's biggest wind equipment players including China High Speed Transmission
Equipment Group and Xinjiang Goldwind have little direct wind tower exposure and
any impact would be limited, he said.
The U.S. Commerce Department agreed to launch the separate countervailing duty
investigation even though a U.S. appeals court recently ruled it did not have
legal authority to impose countervailing duties against "non-market economies".
That court decision could eventually force the Commerce Department to revoke
existing countervailing duty orders against 23 Chinese products. However,
department officials have said they are still considering their legal options.
(i) export duties; (ii) export quotas;
(iii) minimum export price requirements; and (iv) export licensing
February 1, 2012 China Briefing
WTO Orders China to Remove Export
Restrictions on Industrial Minerals
Following two years of investigation, the World Trade Organization’s (WTO’s)
Appellate Body ruled on Monday that China’s use of export duties and quotas on
nine types of industrial materials has breached free trade rules. The ruling
could affect the organization’s judging of other similar cases where export
restrictions are used to hoard domestic natural resources.
The case, filed in 2009 by the
United States, the European Union (EU) and Mexico,
accused China of imposing trade barriers to the exports of nine minerals:
bauxite, zinc亜鉛, yellow phosphorus, coke, fluorsparホタル石,
magnesium, manganese, silicon carbide炭化ケイ素and silicon metal, all of which
are widely applied in industrial production.
The plaintiffs argued that China’s export restrictions have led to the higher
prices of those raw materials, putting a wide range of industries in their
countries at a disadvantage.
As the world’s leading producer of most of the above-mentioned minerals, China’s
quota policy on these resources contributes to the global supply-demand gap, and
its export taxation is influential on international prices of these main
industrial raw materials. The country reported the world’s
largest production of zinc and fluorspar at the end of 2010, and proved to be
the second largest producer of bauxite in 2008.
Currently, China imposes export tariffs at various rates on the nine types of
minerals. Coal coke and semi coke – mainly used in iron production and as a fuel
– is subject to a comparatively high temporary export duty of 40 percent in
2012, according to China’s 2012 Tariff Implementation Plan. Yellow phosphorus –
mostly applied in the production of weapons and phosphoric acids – is subject to
an export tariff of 20 percent.
The world’s second-largest economy had previously emphasized the need to
restrain the exports of some unrecoverable natural resources due to
environmental considerations. The trade barriers – which in return put domestic
demand as a priority – have attracted many foreign companies to set up factories
in China to access such resources at a lower cost. From the perspectives of the
United States, the EU and Mexico, such investment migrations were “forced” and
should become a good reason for the WTO to bar the restrictive measures China
James Bacchus, a former chairman and longtime member of the Appellate Body,
expected China to abide by the WTO ruling, as the country still maintains a
heavy reliance on exports and has kept a strong record of adhering to adverse
Just as Bacchus predicted, the Chinese Ministry of Commerce showed a cooperative
attitude, saying in a statement on Tuesday that it would “conduct a scientific
management of resource products in line with WTO rules, to realize sustainable
Western countries called the WTO ruling a “big win,” as it could set a precedent
for them to challenge China’s export restrictions on other crucial resources,
such as rare earths – a category of 17 elements that are used in a wide range of
high-tech products, including solar panels, wind turbines and mobile phones.
China produces over 97 percent of the world’s rare earth supply, but has been
tightening rare earth exports since 2009. On September 1, 2009, the government
announced plans to reduce its export quota to 35,000 tons per year between 2010
and 2015, and the cap in 2011 was practically set at 30,184 tons. In addition,
during 2011, the allowance of production was limited to 93,800 tons, and
production at three major rare earth mines was halted.
Rare earths were not included in this trade dispute case that has just been
finalized, and there are no official reasons for that. Some experts believe rare
earths were not controversial back in mid-2009 as they were relatively cheap and
there are still large reserves in some Western countries.
However, just two months after the filing of the trade case, rare earth prices
grew sharply as a result of China’s restrictive measures.
The EU – which buys from China over EUR1 billion worth of the nine industrial
minerals cited in the case every year – has hoped their victory will convince
Beijing to loosen its policy on rare earth sales.
“China now must comply by removing these export restrictions swiftly and
furthermore, I expect China to bring its overall export regime – including for
rare earths – in line with WTO rules,” said the EU trade commissioner Karel De
China’s policy stance on rare earths is vital to Western high-end manufacturers,
as they are becoming more dependent on Chinese exports. Getting new mining
projects into production in Western countries will take time, and some mines
(such as the mine at Mountain Pass in California) have significantly reduced
production in recent years as a result of China’s cost advantages during the
extracting, separating and refining of rare earths.
In defense of its rare earth quotas, China has cited a legal exception under the
WTO’s predecessor, the General Agreement on Tariffs and Trade. The exception
allows countries to levy export duties and restrict
exports for the purpose of conserving a scarce natural resource or protecting
the environment. However, the Appellate Body confirmed this time that the
exception had been superseded by China’s agreement with
the WTO in 2001 to dismantle virtually all export restrictions.
In particular, China had argued in its
defence that some of its export duties and quotas were justified because
they related to the conservation of exhaustible natural resources for some
of the raw materials. But China was not able to demonstrate that it imposed
these restrictions in conjunction with restrictions on domestic production
or consumption of the raw materials so as to conserve the raw materials.
As for other of the raw materials, China
had claimed that its export quotas and duties were necessary for the
protection of the health of its citizens. China was unable to demonstrate
that its export duties and quotas would lead to a reduction of pollution in
the short- or long-term and therefore contribute towards improving the
health of its people.
In fact, economic watchers have questioned
whether or not environmental concern is the main motivation for China’s rare
earth policy. After all, the export quotas are only applied to the rare earth
metals, not products made from those metals.
Echoing this point, an article published on the “Economist” in 2010 made the
following comments: “(China) slashing their exports of rare-earth metals has
little to do with dwindling supplies or environmental concerns. It is all about
moving Chinese manufacturers up the supply chain, so they can sell valuable
finished goods to the world rather than lowly raw materials.”
New EPDM plant slated for China
FasTech Srl of Italy signed a technology contract in Xi'an (西安) with Shaanxi
Yanchang Petroleum Yanan Energy and Chemical Co.陝西延長石油延安能源化工,
a leading petrochemical company in China, to manufacture
Shaanxi Yanchang will receive a license to utilize for its industrial
development project in Yan’an ((延安市陝西省Shaanxi
Province) FasTech innovative and proprietary technology (EPDM) in a plant with a
design capacity of 50,000 tons/year.
The Yanchang EPDM plant should start operations in the second quarter of 2014
and will be fed with monomers to be produced in the new
methanol to olefins (MTO) plant which Yanchang is building in the same
location. As provided in the contract, FasTech, will supply Yanchang with an
extended process design package (PDP) and other technical services. China
Chengda Engineering Co. of Chengdu, Sichuan, P.R. China will subsequently
develop the engineering services.
FasTech Srl is an Italian Technology Company,
offering updated and tailor-made solutions to petrochemical companies for the
construction of new plants and for the revamping or expansion of existing
Fastech is specialized in the selection and full development, up to the
commercialization, of the best and most suitable:
catalytic systems and additives
in order to satisfy the specific needs of a broad range of companies.
FasTech can guarantee a very high level service and a complete assistance to
petrochemical companies thanks to its team of specialists, who have a rich
professional background, acquired in world-wide leader companies.
FasTech head office is located in Seregno (North of Milan, Italy);
FasTech technical department is located in Ferrara (Italy),
the historical original core of Italian petrochemistry
(Prof. Giulio Natta's school);
FasTech branch offices are located in Russia and in China.
FasTech Srl is an Italian Technology Company, offering updated and tailor-made
solutions to petrochemical companies for the construction of new plants and for
the revamping or expansion of existing plants.
Feb 16, 2012 Bloomberg News
China Solar Silicon Production Curbed 30% to
Lift Prices: Energy
China’s polysilicon industry, the biggest
supplier to solar-panel manufacturers worldwide, has idled almost one-third of
production and may keep the plants closed until prices recover from a 60 percent
The price tumble spurred the smallest producers including units of Baoding
Tianwei Baobian Electric Co. and Dongfang Electric Corp. to halt plants,
according to Xie Chen, an analyst from the China Nonferrous Metals Industrial
Association, a trade group that advises the government. China has about 45
percent of global production capacity to purify silicon into polysilicon.
The suspensions may be short-lived because the average spot price for the most
expensive ingredient in making solar panels rose 9 percent since mid-December
from a decade low. A recovery would boost margins for the biggest makers such as
GCL-Poly Energy Holdings Ltd. , China’s largest, and Hemlock Semiconductor Corp.
of the U.S., which is No. 1 in the world by capacity.
“The freeze in production won’t last too long,” Xie said in an interview. “Many
companies have said they will return to manufacturing if prices rise to $47 a
kilogram” from the current level of about $28.80.
Xie forecast prices will jump to $40 to $50 a kilogram this year. That’s enough
to prompt a return to production in the first half of most of the halted plants,
which he estimated were about 30 percent of the total. Xie’s view was shared by
Lian Rui, a senior analyst in Beijing for New York-based research company
Polysilicon will average about $30 this year, and companies including the units
of Baoding Tianwei and Dongfang Electric will probably resume production as
early as May, Lian said in an interview. Bloomberg New Energy Finance has
forecast polysilicon average spot prices to reach $25 per kilogram this year.
Two phone calls placed to Gong Dan, spokesman for Dongfang Electric, and an
e-mail sent to Yin Xiaonan, Baoding Tianwei’s spokesman, weren’t answered.
The rebound from polysilicon’s 10-year low of $26.31 a kilogram in mid-December
coincides with increased interest by China to install photovoltaic devices on
its own soil.
Chinese producers will double the number of panels that will be installed this
year from the 2.2 gigawatts erected in the country in 2011, according to
forecasts from manufacturers Suntech Power Holdings Co. (STP) and Trina Solar
Ltd. (TSL) That would absorb some of the industry’s excess inventory, which led
to the drop in prices and profits.
Demand for solar products is recovering and is expected to shift from Europe to
Asian and U.S. markets, Renewable Energy Corp. ASA (REC), a Sandvika,
Norway-based maker of polysilicon, said in its earnings presentation Feb. 8.
‘Suck up Supply’
The increase in panel demand in China “sucks up some of the excess supply,”
Pavel Molchanov, an analyst for Raymond James & Associates Inc. in Houston, said
by e-mail on Feb. 9.
The expectation that China will increase installations this year has led some
solar companies to keep plants running. GCL- Poly, LDK Solar Co. (LDK) and Asia
Silicon (Qinghai) Co. have continued to operate their plants, according to Xie.
His association acts as a conduit between the Chinese government and solar
companies, advising both ministers and executives.
Xinyu, China-based LDK Solar said in November that it plans to triple its
capacity and make 55,000 tons of polysilicon a year by 2014. GCL-Poly more than
doubled capacity last year to 46,000 tons. Korea’s OCI Co. (010060) is building
a plant capable of making 24,000 tons of the material annually in Saemangeum.
Jessy Fang, a spokeswoman of GCL-Poly in Hong Kong, declined to comment. Two
calls to Li Longji, an acting director for LDK’s public relations department,
It is the smaller companies that have struggled and may continue to do so, said
Lian of Solarbuzz.
Leshan Ledian Tianwei Silicon Science & Technology Co. and Xinguang Silicon,
units of Baoding Tianwei, halted production last year to reduce losses and
operating costs. Dongfang Electric Emei Semiconductor Material Co., a unit of
Dongfang Electric Corp. (1072), also stopped manufacturing.
Zhejiang Xiecheng Silicon Industry Co. filed for bankruptcy in December, the
first collapse of a solar company in China.
“Prices may be stuck near $30 a kilogram for a year or two, but this may be
enough for the bigger companies like LDK and GCL to continue with production,”
Lian said. It’s unlikely that the larger companies will seek to acquire those
that are struggling, he said. “Buying a company that can’t operate efficiently
is costlier than expanding organically,” he said.
Daqo New Energy Corp., the nation’s fourth-largest polysilicon producer, can
produce polysilicon at a cost of $30 a kilogram and is operating at full
capacity, said Kevin He, its investor relations manager.
Companies can maintain operation at this price, “but it’s hard to make profits,”
he said. The Wanzhou, Chongqing-based company last year started building a
3,000-ton plant to increase capacity by as much as 70 percent.
The top five polysilicon producers including Hemlock and Germany’s Wacker Chemie
AG (WCH), more than doubled output in 2010 from 2008, data from New Energy
Finance show. The decline in the price of the raw material has been steeper than
the 47 percent decrease for panels last year because polysilicon plants have
higher operating costs, particularly for electricity.
“Power prices account for a substantial portion of the cost of a polysilicon
plant,” said Solarbuzz’s Lian. Prices of electricity are higher in some regions
where factories are located, including the eastern coastal provinces such as
Zhejiang where Zhejiang Xiecheng Silicon Industry’s plant is based, Lian said.
2012/4/2 China Daily
Joint industrial park launched with Malaysia
China and Malaysia on Sunday launched a joint industrial park, which was hailed
as a model project that will improve cooperation between the two countries.
The China-Malaysia Qinzhou Industrial Park 中馬欽州工業園區 will be
developed in the Jingu River area near Qinzhou port in the Guangxi Zhuang
autonomous region, an important passageway for trade with Southeast Asian
The park will act as a demonstration project for cooperation, Premier Wen Jiabao
said at the launch ceremony, also attended by his Malaysian counterpart Datuk
Seri Najib Tun Razak.
The first phase of the project covers 15 square kilometers, with future
development expanding to about 55 sq km.
This will be the first government-to-government mega industrial park project
between China and Malaysia.
Companies from the two sides also signed an agreement to establish a joint
venture in the park.
In talks with Najib earlier in the day in Nanning, capital of Guangxi, Wen said
the two countries should consider building a similar
industrial park in Malaysia.
Najib agreed on building a similar park in Malaysia, which he said would help
Chinese companies leave a larger footprint in the Association of Southeast Asian
China has already inked two such development deals with Singapore in the
China-Singapore Suzhou Industrial Park蘇州
and the China-Singapore Tianjin Eco-City.
The Sino-Malaysian project will enjoy existing preferential policies for the
national-level economic and technological development zone, and the Commerce
Ministry and other departments will also come out with additional policies to
provide a boost.
The park will focus on developing manufacturing, IT technology and modern
It will offer services not only for businesses of the two countries but also for
ASEAN countries and global businesses.
Wen said China encourages more Chinese companies to invest in Malaysia.
The two sides should step up efforts in promoting cooperation on large projects
in energy, transportation, manufacturing and law enforcement, he said.
Wen urged the countries to enhance financial cooperation and accelerate the
realization of trading in local currencies.
He also said the two sides should make more efforts in maintaining regional
peace and prosperity.
Najib hailed China's fast economic development and Sino-Malaysian cooperation,
which he said have contributed to Malaysia's development. He said Malaysia is
ready to build the industrial park with China into a model project that creates
new growth points for future cooperation, and deepen cooperation in areas
including trade, energy and finance.
Luo Yongkun, an expert on Southeast Asian studies at China Institutes of
Contemporary International Relations, told China Daily that as cooperation has
mainly been in import and export businesses, the establishment of this
industrial park marks a new field on the economic exchange platform.
The relationship between the two countries has become better than ever before,
In 2011 bilateral trade volume amounted to about $100 billion, accounting for a
quarter of that between China and the ASEAN, he said.
"With the gradual stretching of cooperation in trade, finance, security and
other fields, prospects of Sino-Malaysian bilateral relations will be even
brighter," Luo said.
For three consecutive years, China has been Malaysia's biggest trading partner,
accounting for 13.2 percent of Malaysia's foreign trade. Malaysia is the biggest
trading partner of China among ASEAN countries.
Palm oil was a major commodity export to China while in manufactured goods,
technology products like computer chips took up some 40 percent of the trade for
The proposal to create the industrial park was raised by Wen during his visit to
Malaysia in April 2011.
Najib said the speed for the realization of the park is a testimony of the
vibrant energy, the commitments of both sides and their deepening trade and
China-Malaysia Qinzhou Industrial Park (QIP
for short), planned to be 55 square km., is designed as an integrated modern
industrial district for industries, businesses and residence. It is part of
the agreement reached upon by Chinese and Malaysian Prime Ministers in April
2011, when Premier Wen Jiabao proposed that QIP is the first industrial park
collaborated by China and Malaysia in West China, and therefore holds
important model significance.
QIP will focus on equipment
manufacturing, electronic information, new energy & new materials, deep
processing of agricultural and sideline products and modern services. The
start-up district will be focused on trading, logistics, and processing &
manufacturing for import and export.
In accordance with the principles of being “guided by the governments, based
on the industrial park, operated by enterprises, driven by projects and
aimed at shared interests”, QIP will be built into an international
high-tech and low carbon industrial park, a landmark project for
Sino-Malaysian economic and trade cooperation and a model area of
cooperation in China-ASEAN Free Trade Area (CAFTA).
Feb 25, 2014 Xinhua
China's petrochemical Hengyi Industries,
Brunei's Damai Holdings enter new joint venture
Petrochemical giant Hengyi
Industries Sdn Bhd (Hengyi 紡織大手の浙江恒逸集団)
from China announced here Tuesday that the company and
Hongkong Tianyi International Holding Company Limited had entered into a
Joint Venture Agreement with Damai Holdings Limited,
a wholly owned subsidiary of Strategic Development Capital Fund (SDCF), a Brunei
government trust sub-fund to undertake the Oil Refinery
and Aromatics Cracker Plant Project at Pulau Muara Besar.
International Holding Company Limited, a wholly owned subsidiary of
Zhejiang Hengyi Petrochemical Co. Ltd. will hold 70
percent equity stake in the joint venture whilst
Damai Holdings Ltd will hold the remaining 30
percent. The parties will conduct the project through Hengyi Industries
as the joint venture company. "Hengyi Industries is delighted to join forces
with Damai Holdings Limited as our equity partner. This joint venture agreement
fits the investment strategy of Hengyi Petrochemical Co. Ltd. and marks a
significant milestone in the development of the petrochemical project at Pulau
Muara Besar," remarked Mr. Qiu Jian Lin, chairman of Hengyi Petrochemical Co.
Hongkong Tianyi International Holding (Zhejiang
Hengyi Petrochemical ) 70%
Development Capital Fund, a Brunei
government trust sub-fund) 30%
Integrated Oil Refinery and Aromatics
"Our commitment in the Pulau Muara Besar
project in Brunei Darussalam has given potential partners in the petrochemical
industry much confidence in Hengyi Industries as a responsible and competent
operator. The signing of the Joint Venture Agreement with Damai Holdings Limited
is a testament to that confidence,"he added.
Hengyi Industries is planning the investment,
construction, operations and maintenance of an Integrated
Oil Refinery and Aromatics Cracker plant on Pulau Muara Besar. The
investment for Phase 1 of the project is expected to amount to approximately 4
billion U.S. dollars, creating about 780 job opportunities in the country.
The construction for Phase 1 is scheduled to
begin as soon as possible once all conditions for construction are satisfied.
Upon completion of Phase 1, the facility will be able to produce petroleum
products such as gasoline, diesel, Jet A-1 fuel and
petrochemical products such as paraxylene and benzene,
which would contribute in extending the value chain of the oil and gas sector in
December 29, 2014 zacks.com
Sinopec Starts Sourcing Natural Gas from
China Petroleum and Chemical Corporation, or Sinopec, has started a processing
plant in southwest China that treats high-sulphur natural gas pumping from
a new field at Yuanba. Sinopec is China's
second-largest energy major.
Located in China's top gas producing province of Sichuan, Yuanba 元壩 will have
the capability to produce 3.4 billion cubic metres (bcm) of gas a year by end of
2015, twice from the current yield of 1.7 bcm per year.
The news of the start-up of the new gas field is followed by Sinopec’s
announcement that it would increase its winter gas supplies to domestic users by
11% to meet the growing demand for heating.
Spread over an area of 3,200 square kilometers and covering the cities of
Guangyuan 広元市, Nanchong 南充市
and Bazhong 巴中市, Yuanba field has a proven
reserve of 219.4 bcm. The gas reservoir with an average depth of 6,700 meters is
among the deepest in Chinese conventional gas deposits.
Sinopec’s $10 billion Puguang venture 普光ガス田計画(2002年発見 was its first major
high-sulphur gas development project, while Yuanba is the company’s second major
The majority of Yuanba’s gas will be transported through a pipeline to central
and east China once it is fully operational.
Sinopec has stated that it expects its total gas output to increase by 8% to 20
bcm in 2014. The world's highest energy user and the third-largest consumer of
gas, China, is competing to unlock supplies of the cleaner-burning fuel by
enhancing imports and by domestic exploration of both conventional and
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The
company is the second largest crude oil and natural gas producer, and the
largest refiner and marketer of refined petroleum products in China. It is also
the largest producer and distributor of petrochemicals in the nation.
April 23, 2015
Chang Chun Chemical (Jiangsu) Co., Ltd.
Starts Up New Bisphenol-A Plant Using Badger Technology in Changshu, Jiangsu
Chang Chun Chemical (Jiangsu) Co., Ltd., a leading bisphenol-A (BPA)
manufacturer in China, has started operation of its second BPA plant using
proprietary technology from Badger Licensing LLC (Badger). The new
135,000 metric ton per annum grassroots BPA plant
is located in Changshu, Jiangsu Province, People’s Republic of China, and is
constructed on the same Chang Chun site as another 135,000
metric ton per annum BPA plant licensed by Badger which has been in
operation since 2013.
Chang Chun Chemical (Jiangsu) Co., Ltd. is an affiliate of Chang Chun Plastics
Co., Ltd. 台湾長春プラスチック which also operates two BPA plants in Taiwan, with
technology licenses from Badger.
Targeted medium-term lending facility (TMLF:定向中期借貸便利) を発表した。
lending facility：MLF) の期間1年の利率は現在3.30%であるが、TMLFは3.15%に引き下げた。借り換えも最大3年まで認める。
China Petroleum Engineering Construction Company
wins contract to build NGL plant in Iraq
China Petroleum Engineering Construction Company
(CPECC：中国石油工程建設）signed the contract on Feb 27, 2019 with Iraq's Basra Gas
Company to build a natural gas liquids (NGL) plant in Basra.
May 10, 2019 Reuters
Sinopec, CNPC skip Iran oil purchases for May to avoid U.S. sanctions
China Petrochemical Corp (Sinopec Group) and China
National Petroleum Corp (CNPC), the country’s top state-owned refiners, are
skipping Iranian oil purchases for loading in May after Washington ended
sanction waivers to turn up pressure on Tehran, three people with knowledge of
the matter said.
The United States has not renewed any exemptions from sanctions on Iran, taking
a tougher line than expected on the expiry of the waivers. The waivers were
granted last November to buyers of Iranian oil.
China is Iran’s largest oil customer with imports of 475,000 barrels per day
(bpd) in the first quarter of this year, according to Chinese customs data.
Two of the sources said Sinopec and CNPC have skipped bookings for cargoes
loading in May as the companies were worried that taking oil from Iran could
invoke U.S. sanctions and cut them out of the global financial system.
A third source said Sinopec, who buys the majority of China’s Iranian oil
imports, does not wish to breach a long-term supply contract but has opted to
suspend booking new cargoes for now due to the sanction worries.
All of the people with knowledge of the matter requested anonymity due to the
sensitive nature of the topic.
Of the five supertankers that loaded Iranian crude in April for China, two have
discharged, while another two are waiting off Ningbo 寧波and
Zhoushan 舟山in eastern
China to discharge, according to Refinitiv data and Refinitiv analyst Emma Li. A
fifth tanker is heading to Shuidong水東港 in southern Guangdong province. 広東省
The sources said they did not know how long the suspensions will last.
Both Sinopec and CNPC declined to comment. The National Iranian Oil Company (NIOC)
did not immediately respond to an email from Reuters seeking comment.
The two firms took a similar move last October by skipping shipments for
November, before Washington reimposed sanctions on Iran’s oil exports to push
the Islamic Republic to renegotiate a deal to stop its nuclear and ballistic
missile programs and curb its regional influence.
They later resumed bookings after the U.S. granted waivers to China and other
seven global clients of Iranian oil, and purchased additional cargoes to make up
the delayed shipments, according to the third source and trade flow data.
“There are no nominations so far...but companies are trying to find some
solution, such as offering to top up volumes in later months,” said the source.
Sinopec agreed in 2012 to lift an average of about 265,000 bpd oil from Iran in
a long-term deal that expires end of 2019.
While Beijing has criticized the unilateral U.S. sanctions on Iran and the end
to the exemptions, companies are erring on the side of caution unless they
receive a specific government mandate to keep ordering oil from Tehran, the
first two sources said.
CNPC, whose Iranian oil comes mostly from its investments at two Iranian oil
fields, is also skipping imports for this month, said one of those sources.
“For now it’s just not worth the risks as the volume is very small in (the
company’s) overall purchases,” said the source, adding that CNPC is entitled to
lift an average of 2 million barrels, about 67,000 bpd, of oil from its
investment a month.