ChemChina

For another state-owned enterprise, see Sinochem Group.
ChemChina
State-owned enterprise
Industry Chemicals
Founded 1984 (as Bluestar)
May 2004 (as ChemChina)
Founder Ren Jianxin
Headquarters Beijing, China
Key people
 Ren Jianxin (chairman)
Revenue Increase CN¥260.253 billion (2015)
Increase CN¥1.631 billion (2015)
Increase (CN¥828.260 million) (2015)
Total assets Increase CN¥372.514 billion (2015)
Total equity Increase CN¥26.181 billion (2015)
Owner Chinese government
Parent State-owned Assets Supervision and Administration Commission of the State Council
Subsidiaries
Website chemchina.com
Footnotes / references
in a consolidated basis[1]
China National Chemical Corporation
Simplified Chinese 中国化工集团公司
Traditional Chinese 中國化工集團公司

China National Chemical Corporation (commonly called 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.[2] As of 2015, it is ranked 265th among the Fortune Global 500 companies.[3]

History

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]

Business

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.

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.[8][9]

In February 2016, ChemChina agreed a $43 billion bid for Swiss seeds and pesticides group Syngenta, the largest ever foreign purchase by a Chinese firm.[10] 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.[11] In August 2016, the US regulatory body cleared the deal, while the merger still depends on the regulatory review and concessions made towards the European Commission in September of the same year,[12] in particular with regard to divesting itself from agrochemical subsidiary ADAMA Agricultural Solutions (which was planned to sell to ChemChina's associated company Sanonda). Because of the delay due to European antitrust investigations, the deal is expected to close by the end of March 2017.[13]

Subsidiaries

References

  1. ↑ "2015 Annual Report". ChemChina (in Chinese). archive of Shanghai Clearing House. 28 April 2016. Retrieved 29 September 2016.
  2. ↑ "About Us". ChemChina. Retrieved 3 January 2016.
  3. ↑ "ChemChina". Fortune. Retrieved 14 January 2016.
  4. 1 2 "Management: Ren Jianxin". Pirelli. 20 October 2015. Retrieved 3 February 2016.
  5. 1 2 "Better than barbarians". The Economist. 14 January 2016.
  6. ↑ Yap, Chuin-Wei (January 11, 2011). "China Spends $2.4 Billion…On Pesticides?". Wall Street Journal.
  7. 1 2 3 4 "ChemChina deals boost its profile". People's Daily. October 31, 2008.
  8. ↑ "ChemChina makes €7.1bn bid for Pirelli". The Guardian. Reuters. 23 March 2015. Retrieved 23 March 2015.
  9. ↑ "ChemChina and Camfin Signed Share Purchase Agreement with respect to Pirelli". ChinaChem. 23 March 2015. Retrieved 22 January 2016.
  10. ↑ "ChemChina nearing to buy Syngenta for record $43 billion". Bloomberg Business. 3 February 2016. Retrieved 4 February 2016.
  11. ↑ J. Browning, D. McLaughlin (June 2016). "ChemChina Said to Add Time for U.S. Syngenta Deal Review". Bloomberg.com News. Retrieved 26 July 2016.
  12. ↑ "M.7962 CHEMCHINA / SYNGENTA". European Commission. European Union. Retrieved 27 October 2016.
  13. ↑ "ChemChina ready for concessions to clinch delayed Syngenta deal in 2017". Reuters.com. Retrieved 26 October 2016.
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