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 ?xml:namespace>
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.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|