Agrium acquires Equity Position in Chinese Specialty Fertilizer Company Hanfeng
CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that it has acquired a 19.6 percent equity position in a Chinese specialty fertilizer company, Hanfeng Evergreen Inc. (Hanfeng) for C$6.22 per share or US$63-million. In addition, Agrium has the opportunity to participate in a proposed joint venture between Hanfeng and PetroChina Ningxia Petrochemical Company (PetroChina). It is expected that this joint venture will build and operate Sulphur Coated Urea (SCU) plants in Ningxia and the surrounding provinces.
“I believe this is excellent strategic fit for Agrium, one that leverages off our expertise in the specialty fertilizer business and provides a platform for future growth in the important Chinese fertilizer and agriculture market,” said Mike Wilson, President and CEO of Agrium.
Hanfeng is a leading provider of value-added fertilizers in China, with significant granulated NPK production, blending capacity and growing SCU capacity. Hanfeng is traded on the Toronto Stock Exchange (TSX) under the symbol HF. SCU production technology was licensed from Nu-Gro Technologies, which is now part of Agrium’s Advanced Technologies business unit.
Hanfeng has grown significantly in the specialty fertilizer market in the past two years, and has plans to continue to expand production in China. The growth is expected to be largely in slow and controlled release fertilizers, which increase yields and represents a best nutrient management practice.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.