20 June 2008 17:10 [Source: ICIS news]
HOUSTON (ICIS news)--China’s ShengdaTech has been ordered to move its coal-based chemical operation away from Tai’an City and plans to relocate the operation to a Jinan Fertilizer site, the company said on Friday.
ShengdaTech, which makes nano precipitated calcium carbonate as well as coal-based chemical products in Tai’an City, Shandong province, said it plans to acquire Jinan Fertilizer. ShengdaTech plans to move its coal-based chemical operation to the ?xml:namespace>
The fertilizer company is based in
ShengdaTech said it received a relocation notice from Tai’an City on Monday. The city government ordered the move due to the proximity of the coal-based chemical plant to residential and business properties. The order was part of
“According to terms of the relocation notice, ShengdaTech must cease operations at its Tai'an City coal-based chemical facility on November 1, 2008 but is permitted to continue operations until October 31, 2008 to ensure a stable transition of its chemical business and employees,” the company said in a statement.
ShengdaTech said it has been searching for a strategic acquisition to expand its coal-based chemical business and to serve as a new site for existing operations.
Jinan Fertilizer is currently managed by Shandong Shengda Technology, an affiliate of ShengdaTech.
ShengdaTech said it expects to complete the acquisition on or before 1 November.
"Given the accelerated timeline to relocate our existing chemical operations, we are working to complete the acquisition of Jinan Fertilizer as early as possible in order to minimise any disruption to this business segment," said ShengdaTech CEO and president Xiangzhi Chen.
Jinan Fertilizer has seven subsidiaries and about 1,800 employees.
“Assuming the current market demand continues, the company estimates that once Jinan Fertilizer achieves full operations in 2009, it could yield an annual sales of approximately three times the current sales of ShengdaTech's existing chemical business,” ShengdaTech said.
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