ChemChina

Last updated
China National Chemical Corporation
ChemChina
FormerlyBluestar (1984–2004)
Company type State-owned enterprise
IndustryChemicals
Founded1984;40 years ago (1984)
Founder Ren Jianxin
Headquarters
Haidian District, Beijing
,
China
Key people
 Ning Gaoning (Chairman)
RevenueIncrease2.svg CN¥300.127  billion  (2016)
Increase2.svg CN¥002.803 billion (2016)
Increase2.svg CN¥000119 million (2016)
Total assets Increase2.svg CN¥377.642 billion (2016)
Total equity Decrease2.svg CN¥024.061 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
Transcriptions
Standard Mandarin
Hanyu Pinyin Zhōngguó Huàgōng Jítuán Gōngsī
Website www.chemchina.com
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]

Contents

History

Bluestar Company

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  [ zh ] 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]

State company

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]

Syngenta acquisition

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]

Sinochem merger

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]

U.S. sanctions

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]

Subsidiaries

Related Research Articles

<span class="mw-page-title-main">Pirelli</span> Italian multinational tyre manufacturer

Pirelli & C. S.p.A. is an Italian multinational tyre manufacturer based in the city of Milan, Italy. The company, which has been listed on the Borsa Italiana since 1922, is the 6th-largest tyre manufacturer, and is focused on the consumer production of tyres for cars, motorcycles and bicycles. It is present in Europe, the Asia-Pacific, Latin America, North America, and the post-Soviet states, operating commercially in over 160 countries. It has 19 manufacturing sites, across 13 countries, and a network of around 14,600 distributors and retailers. In 2015, China National Chemical Corp. Ltd. (ChemChina) took controlling interest of Pirelli; with the Chinese state-owned company agreeing to maintain the tyre company's ownership structure until 2023.

<span class="mw-page-title-main">Novartis</span> Swiss multinational pharmaceutical corporation

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BASF SE, an initialism of its original name Badische Anilin- und Sodafabrik, is a European multinational company and the largest chemical producer in the world. Its headquarters are located in Ludwigshafen, Germany.

<span class="mw-page-title-main">Agrochemical</span> Any chemical used in agriculture

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<span class="mw-page-title-main">Syngenta</span> Global provider of agricultural science and technology

Syngenta is a global agricultural technology company headquartered in Basel, Switzerland. It primarily covers crop protection and seeds for farmers. Syngenta is part of the Syngenta Group, entirely owned by Sinochem, a Chinese state-owned enterprise.

Ning Gaoning, also known as Frank Ning, is a Chinese manufacturing executive.

<span class="mw-page-title-main">Sinochem</span> Chinese chemical and fertilizer conglomerate

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ADAMA Ltd., formerly known as Makhteshim-Agan, is a crop protection company.

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<span class="mw-page-title-main">Sanonda</span>

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.

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<span class="mw-page-title-main">UPL (company)</span> Indian multinational chemical 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. Dr. Mritunjay Chaubey The Global Vice President and Head of Environment & Sustainability, has brought sustainability to new benchmarks and heights. Mritunjay's work lead UPL to WBCSD as the only company from India who was offered this prestigious opportunity to present their study on this international platform. 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.

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<span class="mw-page-title-main">Pydiflumetofen</span> Chemical compound used to kill fungi

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References

  1. ↑ 2016年年度报告 [2016 Annual Report] (in Chinese (China)). ChemChina. 29 April 2017. Archived from the original on 7 November 2022. Retrieved 9 January 2018– via chinabond.com.cn.
  2. ↑ "About Us". ChemChina. Archived from the original on 4 April 2019. Retrieved 3 January 2016.
  3. ↑ "ChemChina". Fortune. Archived from the original on 4 April 2019. Retrieved 5 March 2019.
  4. 1 2 "Management: Ren Jianxin". Pirelli. 20 October 2015. Archived from the original on 5 January 2017. Retrieved 3 February 2016.
  5. 1 2 "Better than barbarians". The Economist. 14 January 2016. Archived from the original on 23 August 2017. Retrieved 25 August 2017.
  6. ↑ Yap, Chuin-Wei (January 11, 2011). "China Spends $2.4 Billion…On Pesticides?". Wall Street Journal. Archived from the original on June 15, 2020. Retrieved August 4, 2017.
  7. 1 2 3 4 "ChemChina deals boost its profile". People's Daily. October 31, 2008. Archived from the original on March 3, 2011. Retrieved December 29, 2013.
  8. ↑ "ChemChina moving into Singapore oil hub to speed crude buys". Reuters. 2013-08-22. Archived from the original on 2022-02-15. Retrieved 2020-06-30.
  9. ↑ "ChemChina makes €7.1bn bid for Pirelli". The Guardian. Reuters. 23 March 2015. Archived from the original on 25 March 2015. Retrieved 23 March 2015.
  10. ↑ "ChemChina and Camfin Signed Share Purchase Agreement with respect to Pirelli". ChinaChem. 23 March 2015. Archived from the original on 11 February 2022. Retrieved 22 January 2016.
  11. 1 2 "ChemChina nearing to buy Syngenta for record $43 billion". Bloomberg Business. 3 February 2016. Archived from the original on 21 June 2022. Retrieved 4 February 2016.
  12. 1 2 3 Webb, Quentin (May 26, 2017). "To Pay for Syngenta, ChemChina Looks to Beijing for Help". The New York Times . New York City, United States. Archived from the original on February 11, 2022. Retrieved May 29, 2017.
  13. ↑ J. Browning, D. McLaughlin (June 2016). "ChemChina Said to Add Time for U.S. Syngenta Deal Review" Archived 2022-09-01 at the Wayback Machine . Bloomberg.com News. Retrieved 26 July 2016.
  14. ↑ "M.7962 CHEMCHINA / SYNGENTA". European Commission. European Union. Archived from the original on 5 October 2022. Retrieved 27 October 2016.
  15. 1 2 "ChemChina gets around 82 percent of Syngenta in $43 billion deal". Reuters. 10 May 2017. Archived from the original on 14 May 2017. Retrieved 2 July 2017.
  16. ↑ "ChemChina ready for concessions to clinch delayed Syngenta deal in 2017" Archived 2023-03-29 at the Wayback Machine . Reuters.com. Retrieved 26 October 2016.
  17. ↑ Tsang, Amie (6 April 2017). "Deal's Approval Buoys China in Its Quest for Food Security". The New York Times . p. A1. Archived from the original on 21 October 2023. Retrieved 8 April 2017.
  18. ↑ "FTC Requires China National Chemical Corporation and Syngenta AG to Divest U.S. Assets as a Condition of Merger". Federal Trade Commission. 4 April 2017. Archived from the original on 11 February 2022. Retrieved 8 April 2017.
  19. ↑ "Mergers: Commission clears ChemChina acquisition of Syngenta, subject to conditions". European Commission. 5 April 2017. Archived from the original on 16 July 2019. Retrieved 8 April 2017.
  20. ↑ "As Syngenta deal closes, ChemChina and Sinochem press $120 billion deal: sources". Reuters. 2017-05-23. Archived from the original on 2020-07-02. Retrieved 2020-07-01.
  21. ↑ "China: Neuer Chemie-Riese: Fusion von Sinochem und Chemchina steht kurz bevor". www.handelsblatt.com (in German). Archived from the original on 2022-12-04. Retrieved 2022-08-05.
  22. ↑ "Sinochem Holdings > About Us > Profile > History". www.sinochem.com. Archived from the original on 2022-02-10. Retrieved 2022-08-05.
  23. ↑ "DOD Releases List of Additional Companies, in Accordance with Section 1237 of FY19 NDAA". U.S. Department of Defense. August 28, 2020. Archived from the original on 30 August 2020. Retrieved 30 August 2020.
  24. ↑ "Qualifying Entities Prepared in Response to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999 (PUBLIC LAW 105–261)" (PDF). U.S. Department of Defense. August 28, 2020. Archived (PDF) from the original on 28 August 2020. Retrieved 30 August 2020.
  25. ↑ Chen, Shawna (November 12, 2020). "Trump bans Americans from investing in 31 companies with links to Chinese military". Axios . Archived from the original on October 28, 2021. Retrieved November 12, 2020.
  26. ↑ Pamuk, Humeyra; Alper, Alexandra; Ali, Idrees (2020-11-12). "Trump bans U.S. investments in firms linked to Chinese military". Reuters . Archived from the original on 2021-10-28. Retrieved 2020-11-12.
  27. ↑ "DOD Releases List of People's Republic of China (PRC) Military Companies in Accordance With Section 1260H of the National Defense Authorization Act for Fiscal Year 2021". U.S. Department of Defense . 2022-10-05. Archived from the original on 2022-10-05. Retrieved 2022-10-05.
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