Degussa strengthens position in agrochemicals

21-Jul-2005

Degussa AG, Dusseldorf, is continuing to expand its business in China, with the company today signing the agreement in the northern Chinese city of Yingkou to participate in a joint venture for manufacturing cyanuric chloride (CYC) and derivates. The world's leading specialty chemicals company will hold a 65 percent stake in the joint venture Degussa Sanzheng (Yingkou) fine chemicals Co. Ltd. Liu Zhixun, principle shareholder and head of the northern Chinese company of Yingkou Sanzheng Fine Chemicals (YSFC), will hold 35 percent. YSFC is a major CYC producer with a great deal of experience in the markets of China and Asia. The new joint venture will operate primarily in the Asia region, once the approvals required are available from the relevant authorities. It will generate sales of around 35 million euros with 650 employees. CYC has many important applications as an intermediate product in agriculture and industry. The signing of the agreement took place in the presence of Dr. Bernhard Hofmann, Head of Degussa's Fine & industrial chemicals Division, Liu Guogiang, Governor of the Province of Liaoning, Meng Fanli, Party leader for the city of Yingkou and the Mayor Zhao Huamin. Dr. Bernhard Hofmann, Head of Degussa's Fine & Industrial Chemicals Division: "The new joint venture sees us following in the footsteps of our customers, and in the process establishes the basis in China for further growth in our agrochemicals business." China is an attractive market for CYC, with annual growth rates of more than 7 percent. Degussa has so far been manufacturing CYC at the Wesseling and Münchsmünster sites in Germany, and in Antwerp, Belgium. Dr. Joachim Semel, Head of Degussa's Building Blocks Business Unit: "We will be integrating the new joint venture into our global CYC business. The synergies in process improvement and logistics are expected to yield cost advantages and an important strengthening of our competitive position." The Building Blocks Business Unit (2004 sales: 656 million euros) is part of the Fine & Industrial Chemicals Division, which generated sales of more than 2.8 billion euros in fiscal year 2004.

https://www.chemeurope.com/en/news/47800/degussa-strengthens-position-in-agrochemicals.html