Degussa, China's Yingkou Sanzheng in cyanuric chloride jv

20 July 2005 16:39  [Source: ICIS news]

LONDON (CNI)--Degussa said on Wednesday it has signed an agreement to form a joint venture in China to produce cyanuric chloride (CYC) and its derivatives with Liu Xhixun, the principal shareholder and head of Yingkou Sanzheng Fine Chemicals (YSFC).

 

Degussa Sanzheng (Yingkou) Fine Chemicals will be owned 65% by Degussa and 35% by Liu Zhixun. YSFC is a major CYC producer with significant experience in the markets of China and Asia. The product has many applications as an intermediate in agricultural products and industry.

 

The joint venture will operate primarily in Asia, subject to regulatory approvals. It will generate sales of around Euro35m ($42m) and will have 650 employees.

 

Bernhard Hofmann, head of Degussa's fine & industrial chemicals division said: "The new joint venture sees us following in the footsteps of our customers, and in the process establishes the basis in China for further growth in our agrochemicals business."

 

China is an attractive market for CYC, with annual growth rates of more than 7%. Degussa has so far been manufacturing CYC at the Wesseling and Münchsmünster sites in Germany, and in Antwerp, Belgium.

 

Joachim Semel, head of Degussa's building blocks business unit, part of the fine and industrial chemicals division, said that the joint venture will be integrated into Degussa's global CYC business where “synergies in process improvement and logistics are expected to yield cost advantages and an important strengthening of our competitive position."

 

Degussa has 1,400 employees in China and generated sales of approximately Euro300m in 2004. It currently has 18 companies operating in the country, and opened a new research and development (R&D) centre in Shanghai in 2004.


By: Staff Reporter
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