On Nov.23rd, Sinochem Hong Kong Holding (0297, HK) declared that it has completed the purchase of 4.54% stakes of ShanDong Hualu-Hengsheng Chemical Corp. (600426, Shanghai) These stakes are not publicly traded in the stock market. After the completion of the purchase, Sinochem has become the second largest shareholder of Hualu-Hengsheng.
Hualu-Hengsheng has the distinctive feature in fertilizer and chemical product’s production. It owns the core technology of coal chemical and fertilizer chemical industry. Its product line well includes methanol, urea, formaldehyde, DMF etc. Its capacity of producing DMF is one the world’s largest.
Sinochem Hong Kong Holdings had made another strategic maneuvering in July, 2006 when it bought significant shares of G Luxi (000830).