ChemChina to pay $53m for Cangzhou Dahua stake

20 October 2006 09:50  [Source: ICIS news]

SINGAPORE (ICIS news)--China National Chemical Corp (ChemChina) has reached an agreement to buy a majority stake in Hebei Cangzhou Dahua Group for CNY417m ($52.8m/€41.8m).

ChemChina’s subsidiary ChemChina Agrochemical Corp will hold the 51% stake, Cangzhou Dahua said in a statement on Friday, while the Cangzhou government will own the remainder.

The company did not explain why the stake was lower than the 60% share announced earlier.

ChemChina will also invest CNY7.2bn in Cangzhou Dahua’s projects by 2011.

The projects already approved by the government include units to produce 50,000 tonnes/year of toluene diisocyanate (TDI), 30,000 tonnes/year of melamine, 100,000 tonnes/year of caustic soda and 100,000 tonnes/year of nitric acid at Cangzhou, Hebei province.

It did not say when these units will start up.

Other projects in the pipeline are a 50,000 tonnes/year polycarbonate (PC) unit, TDI and methylene diphenyl diisocyanate (MDI) units each with a capacity of 100,000 tonnes/year.

These could be completed by 2011, depending on technology development, market conditions as well as the budget allotted, Cangzhou Dahua said.

Cangzhou Dahua operates a 200,000 tonnes/year granular urea unit and a 30,000 tonnes/year TDI unit.

By: Florence Tan
+65 6780 4359

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