On June 18, Sinochem, Guizhou KaiLin (Group) Co., Ltd. and Guiyang Industrial Investment Holdings held the signing ceremony in Guiyang on the establishment of the joint venture Guiyang Sinochem Kailin Fertilizer Co., Ltd. The joint venture leverages on the financial strength and marketing network of Sinochem, the resources and technologies of KaiLin Group and the government relations of Guiyang Industrial Investment Holdings, having a promising prospect. Its establishment will have a big impact on the Chinese phosphate and compound fertilizer industries and marks a major step of Sinochem towards the upstream of the fertilizer industry.
The joint venture is set up on the basis of Xifeng Heavy Calcium Company, the wholly owned subsidiary of KaiLin Group. It has a registered capital of $366 million, of which Sinochem holds 41%. On the day of establishment the company held the first shareholders conference to discuss the setup of rules and regulations, production planning and management affairs. The venture plans to raise the production of high-concentration phosphate fertilizer to 1.1 million tons/year on the basis of the current annual production capacity of 240,000 tons of MAP, 160,000 tons of DAP, 100,000 tons of heavy calcium and 15,000 tons of feed-grade Calcium Hydrophosphate, which will make it the Chinese leader in the phosphate and compound fertilizer industries.
The joint venture represents another step of Sinochem’s expansion into the fertilizer manufacturing industry following its investment into Yunnan Three Circles Sinochem Cargill, Fujian Sinochem Zhisheng and Hubei Sinochem Orient, which will help the company secure upstream resources, improve the manufacturing, supply and sales chain and ensure the growth of fertilizer business.