11 March 2009 10:45 [Source: ICIS news]
SINGAPORE (ICIS news)--Japanese producers Chisso, Asahi Kasei and Mitsubishi Chemical plan to consolidate their fertilizer businesses amid an “extremely challenging” operating environment, Asahi Kasei said in statement on Wednesday.
“The Japanese operating environment for fertilizers has become extremely challenging, with declining fertilizer demand resulting from decreases in both the area under cultivation and the amount of fertilizer applied per unit of area,” Asahi Kasei said.
“In addition, increased costs for fertilizer precursor materials have made a fundamental rationalisation and streamlining of the domestic fertilizer industry unavoidable,” the company said.
The three parties will be hammering out further details of the plan to bring together Chisso-Asahi Fertilizer Co and Mitsubishi Chemical Agri, eyeing October 2009 as the target date of implementation, Asahi Kasei said.
Chisso-Asahi Fertilizer is a 65:35 joint venture between Chisso and Asahi, while Mitsubishi Chemical Agri is 95.3% owned by Mitsubishi Chem.
Detailed studies on the consolidation will be performed, Asahi said.
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