06 August 2010 09:39 [Source: ICIS news]
SHANGHAI (ICIS)--China's Chongqing Jianfeng Chemical Co plans to acquire the melamine unit of its parent firm - Chongqing Jianfeng Industry Group, to diversify its product offering, a company source said on Friday.
Included in the planned acquisition is a 30,000 tonne/year melamine plant, the source at the Shenzhen-listed company.
“Melamine production enjoys better profit than fertilizer production. That’s why we want to inject the branch into our company,” the source said.Based in southwestern China, Chongqing Jianfeng Chemical currently produces mainly urea, compound fertilizer and liquid ammonia.
“If the deal [was] completed successfully, there is no doubt that the profitability of the listed arm [Chongqing Jianfeng Chemical] will significantly improve,” the company source added.
However, she declined to say how much the company would pay for the acquisition, citing that the plan was just in the preparatory stages.
The acquisition still needed to be approved by the company’s board, shareholders and regulatory authorities, the source added.
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