SunVic wins $98.3m in chem orders for 2008

21 November 2007 02:37  [Source: ICIS news]

SINGAPORE (ICIS news)--SunVic Chemical said late on Tuesday that it has clinched $98.3m (€66.8m) worth of orders from the US, Brazil and Argentina for herbicide intermediates which should contribute significantly to revenue and profit next year.

Under the agreements, its subsidiary Jiangsu Jurong Chemical will supply 25,200 tonnes of PMIDA (N-Phosphonomenthyl-iminodiacetic acid) to three existing customers in the US, Brazil and Argentina respectively throughout 2008, the Chinese acrylates producer said.

“Based on our current PMIDA price of approximately $3,900/tonne, we expect these agreements to contribute significantly to our revenue as well as for profit for 2008,” the company, which listed on the Singapore Exchange earlier this year, said.

The pricing of PMIDA under the agreements are negotiated and determined every two to three months, it added.

This amount to be supplied will constitute about 84% of SunVic’s expected annual production for PMIDA in 2008, SunVic said, adding that it planned to raise its annual production capacity for the product to 30,000 tonnes from 20,000 tonnes.

It does not expect the production of its current products acrylic acid and acrylate esters to be affected by the expansion of its PMIDA business operations, the company said.

PMIDA is an intermediate chemical product used mainly in the production of glyphosate, a type of herbicide used in the plantation of transgenic corn and soya bean.

($1 = €0.68)

By: Jeanne Lim
+65 6780 4359

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