Anhui fertilizer enterprises continue to merge and restructure this year

The reporter recently learned from the Anhui Chemical Fertilizer Industry Association that due to the overcapacity in the fertilizer market, the number of backbone fertilizer enterprises in Anhui will be further reduced in 2012, and the Anhui fertilizer industry will also grow and expand in restructuring and mergers. At present, there are less than 10 backbone fertilizer companies in Anhui.

Since 2000, the average growth rate of domestic fertilizer production is 8.6%, while the average growth rate of consumption is 6.2%. The fertilizer market has been heavily oversupplyed. However, as the previous projects are put into operation one after another, new capacity will be added this year, and the market is expected to increase. Competition will also be more intense.

As a new joint enterprise reorganized by three chemical fertilizer companies and a chemical company in Hefei City, Zhongyan Anhui Hong Sifang Co., Ltd. is one of the three major salt chemical industry bases invested and built by China National Salt Industry Corporation in the country and the largest in East China. The salt chemical base covers nearly 20 varieties of chlor-alkali, soda ash and chemical fertilizers, with an annual production capacity of 3.5 million tons. The Hefei Chemical Base project with a total investment of 11.4 billion yuan has started construction. After the project is completed, it will form a circular economy chemical base with “integrated coal salt and refined products”.

If Anhui Red Quartet is only reorganized locally in Hefei, the pace of mergers and reorganizations of Anhui Liuguo Chemical Co., Ltd. has already gone beyond the province. On December 2, 2011, Anhui Liuguo Chemical Industry Co., Ltd. and China Cinda Asset Management Co., Ltd. signed the “Equity Transfer Agreement” on the Shanghai United Assets and Equity Exchange, and received 51% of the equity interest in Jiangxi Guixi Fertilizer Co., Ltd. Acquisition of Jiangxi Guihua.

This merger is the largest in the history of Six-Country Chemical Industry and has the largest market influence in a horizontal M&A transaction. It is the merger of two large-scale high-concentration phosphate and compound fertilizer companies. Therefore, Six Nations Chemicals has become the only company in the industry with two A well-known trademark enterprise in China. The success of this large-scale M&A transaction is not only beneficial to the development of Six-State Chemicals, but also has profound implications for the merger and reorganization of the entire industry.

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