ChemChina | |||||||
Formerly | Bluestar (1984-2004) | ||||||
Company type | State-owned enterprise | ||||||
Industry | Chemicals | ||||||
Founded | 1984 | ||||||
Founder | Ren Jianxin | ||||||
Headquarters | , China | ||||||
Key people | Ning Gaoning (Chairman) | ||||||
Revenue | CN¥300.127 billion (2016) | ||||||
CN¥ 2.803 billion (2016) | |||||||
CN¥ 119 million (2016) | |||||||
Total assets | CN¥377.642 billion (2016) | ||||||
Total equity | CN¥ 24.061 billion (2016) | ||||||
Subsidiaries | ADAMA (100%) Pirelli (45.5%) Syngenta (98.0%) Sanonda (30.75%) | ||||||
Chinese name | |||||||
Simplified Chinese | 中国化工集团公司 | ||||||
Traditional Chinese | 中國化工集團公司 | ||||||
| |||||||
Website | www | ||||||
Footnotes /references in a consolidated basis [1] |
China National Chemical Corporation, commonly known as ChemChina, is a Chinese state-owned chemical company in the product segments of agrochemicals, rubber products, chemical materials and specialty chemicals, industrial equipment, and petrochemical processing for the civilian and military sectors. [2] As of 2020, it is ranked 164th among the Fortune Global 500 companies. [3]
ChemChina began as a small solvents factory called Bluestar Company (Chinese :蓝星公司), founded by Ren Jianxin in 1984 with a 10,000-yuan loan. [4] Ren created the ChemChina empire by taking control of over 100 troubled state-owned chemical factories across China, with the government retaining ownership. Meanwhile, he avoided laying off excess workers by shifting them to the company's Malan Noodle restaurant chain. [5] He brought in consultants to professionalize the company's management, and it has become one of China's most dynamic state enterprises. [5]
In May 2004, after the State Council of the People's Republic of China approved a merger of companies formerly under the Ministry of Chemical Industry as the China National Chemical Corporation (ChemChina), Ren Jianxin became its CEO; in December 2014 he became the chairman of the board of directors. [4]
Within ChemChina's agrochemicals business is a large portfolio of companies including Sanonda Holdings, Cangzhou Dahua, Shandong Dacheng, Jiangsu Anpon, Anhui Petrochemicals, and Huaihe Chemicals. It added Israel-based Makhteshim Agan (renamed to Adama Agricultural Solutions) in 2011 to the division in a 2.4 billion US dollars acquisition of a 60% stake in the company, the largest manufacturer of generic pesticides. [6]
The chemical materials and speciality chemicals group made overseas acquisitions with two deals in 2006, both to acquire French companies. [7] The first one was the Adisseo Group, a global animal nutrition feed firm that specialized in producing methionine, vitamins and biological enzymes. At the time of the purchase, Adisseo had worldwide market share of 30% in methionine. [7] The other company was the organic silicon and sulphide business of Rhodia. [7] With this acquisition the company became the third largest producer in the world of organic silicon. [7]
The petrochemical processing division has been operating refineries including small ones known as teapot plants, giving it an oil processing capacity of about 25 million tonnes (25,000,000 long tons; 28,000,000 short tons) a year or about 500,000 barrels per day. After regulations liberalized the import of crude and fuel products in China, the company opened a trading office in Singapore in October 2013. [8]
In March 2015, it was announced that Pirelli shareholders had accepted a €7.1 billion bid from ChemChina for the world's fifth-largest tyre maker. [9] [10]
In February 2016, ChemChina agreed to a $43 billion bid for Swiss seeds and pesticides group Syngenta, [11] the largest ever foreign purchase by a Chinese firm. [12] [11] The deal was awaiting approval by the Committee on Foreign Investment in the United States (CFIUS) and European government panels, citing food safety and security concerns. In June 2016, both companies refiled the transaction for CFIUS approval, forcing them to restart the application process. [13] In August 2016, the CFIUS cleared the deal, while the merger still awaited the regulatory review and concessions made towards the European Commission, [14] in particular with regard to divesting itself from agrochemical subsidiary Adama Agricultural Solutions (which was planned to sell to ChemChina's associated company Sanonda). [15]
The Australian Competition & Consumer Commission cleared the deal in December 2016, but the buy-out was again delayed due to European antitrust investigations. [16] In April 2017, the European Commissioner for Competition and the U.S. Federal Trade Commission both approved the merger, requiring ChemChina to divest from pesticide production of paraquat, abamectin and chlorothalonil. [17] [18] The European Commission also addressed competition concerns with regard to plant growth regulators and reiterated the expected commitments for divestment from ADAMA-related products. [19] As of May 26, 2017, ChemChina's plan to purchase Syngenta for $44 billion was nearing completion, [12] with ChemChina amassing "huge bridge loans" to pay Syngenta stockholders. [12] The deal was completed that same month with 82.2 percent of Syngenta shares and depository receipts offered. [15]
In May 2017, Reuters , reported that discussion had begun regarding the merging and consolidation of ChemChina and state-owned Sinochem, overtaking industry leaders such as BASF, in a deal worth around $120 billion. [20] ChemChina merged with Sinochem Group to form Sinochem Holdings Corporation Ltd in 2021. This company also belongs to the Chinese state. [21] [22]
In August 2020, the United States Department of Defense published the names of companies operating directly or indirectly in the United States with ties to the People's Liberation Army. ChemChina was included on the list. [23] [24] In November 2020, Donald Trump issued an executive order prohibiting any American company or individual from owning shares in companies that the United States Department of Defense has listed as having links to the People's Liberation Army, which included ChemChina. [25] [26]
In October 2022, the United States Department of Defense added ChemChina to a list of "Chinese military companies" operating in the U.S. [27]
The Monsanto Company was an American agrochemical and agricultural biotechnology corporation founded in 1901 and headquartered in Creve Coeur, Missouri. Monsanto's best-known product is Roundup, a glyphosate-based herbicide, developed in the 1970s. Later, the company became a major producer of genetically engineered crops. In 2018, the company ranked 199th on the Fortune 500 of the largest United States corporations by revenue.
Novartis AG is a Swiss multinational pharmaceutical corporation based in Basel, Switzerland. Consistently ranked in the global top five, Novartis is one of the largest pharmaceutical companies in the world and was the fourth largest by revenue in 2022.
Akzo Nobel N.V., stylized as AkzoNobel, is a Dutch multinational company which creates paints and performance coatings for both industry and consumers worldwide. Headquartered in Amsterdam, the company has activities in more than 150 countries. AkzoNobel is the world's third-largest paint manufacturer by revenue after Sherwin-Williams and PPG Industries.
An agrochemical or agrichemical, a contraction of agricultural chemical, is a chemical product used in industrial agriculture. Agrichemical refers to biocides and synthetic fertilizers. It may also include hormones and other chemical growth agents.
The Committee on Foreign Investment in the United States is an Executive Branch, inter-agency committee of the United States government which reviews the national security implications of foreign investments in U.S. companies or operations, using classified information from the United States Intelligence Community.
Syngenta is a provider of agricultural science and technology, in particular seeds and pesticides with its management headquarters in Basel, Switzerland. It is owned by ChemChina, a Chinese state-owned enterprise.
Clariant AG is a Swiss multinational speciality chemical company, formed in 1995 as a spin-off from Sandoz. Headquartered in Muttenz, Switzerland, the public company encompasses 74 subsidiaries in 36 countries (2022). Major manufacturing sites are located in Europe, North America, South America, China, and India. In 2022, sales from continuing operations were 5.198 billion CHF.
Ning Gaoning, also known as Frank Ning, is a Chinese manufacturing executive.
Sinochem Corporation is a Chinese state-owned multinational conglomerate primarily engaged in the production and trading of chemicals and fertilizer and exploration and production of oil for civilian and military purposes. Its majority owned fertilizer subsidiary Sinofert is involved throughout the chain from production of the product and procurement on international markets to distribution and retail.
ADAMA Ltd., formerly known as Makhteshim-Agan, is a crop protection company.
Elanco Animal Health Incorporated is an American pharmaceutical company which produces medicines and vaccinations for pets and livestock. Until 2019, the company was a subsidiary of Eli Lilly and Company, before being divested. It is the third-largest animal health company in the world.
DuPont de Nemours, Inc., commonly shortened to DuPont, is an American multinational chemical company first formed in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. The company played a major role in the development of Delaware and first arose as a major supplier of gunpowder. DuPont developed many polymers such as Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kapton, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona, Corfam and Lycra in the 20th century, and its scientists developed many chemicals, most notably Freon (chlorofluorocarbons), for the refrigerant industry. It also developed synthetic pigments and paints including ChromaFlair.
Ren Jianxin is a Chinese businessman who is the founding president of the state-owned China National Chemical Corporation (ChemChina), the 265th largest company of the Fortune Global 500. He founded Bluestar, a small solvents factory, in 1984, and created ChemChina by taking control of more than 100 troubled factories from the government, which retains ownership.
Hubei Sanonda Co., Ltd. is a Chinese pesticide producer, based in Jingzhou, Hubei Province. As at 31 December 2016, state-owned enterprise ChemChina via Sanonda Group and Adama Agricultural Solutions owned a combined 30.75% stake. It was followed by the Government of Qichun County (0.70%). A share accounted for 61.27% share capital, comparing to 38.73% for B share.
Corteva, Inc. is a major American agricultural chemical and seed company that was the agricultural unit of DowDuPont prior to being spun off as an independent public company.
UPL Limited, formerly United Phosphorus Limited, is an Indian multinational company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers pesticides. Headquartered in Mumbai, the company is engaged in both agro and non-agro activities. The agro-business is the company's primary source of revenue and includes the manufacture and marketing of conventional agrochemical products, seeds, and other agriculture-related products. The non-agro segment includes manufacturing and marketing industrial chemicals and other non-agricultural products such as fungicides, herbicides, insecticides, plant growth regulators, rodenticides, industrial & specialty chemicals, and nutrifeeds. UPL products are sold in 150+ countries.
J. Erik Fyrwald is an American businessman. He is Chief Executive Officer of International Flavors & Fragrances and member of the IFF Board of Directors. He is the former Chief Executive Officer of the Syngenta Group and served as executive director of the board of directors and chairman of the Syngenta Foundation.
Executive Order 13959 is a U.S. Presidential Executive Order signed on November 12, 2020, by President Donald Trump. Its title, and stated goal, is "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies."