CABB plans to invest $160 million to establish a joint venture in China to produce 50,000 metric tons per year of monochloroacetic acid. The joint venture partners will be Jining Gold Power and Jinwei Huasheng Chemical, and CABB will acquire and become the majority owner of Jinwei Huasheng Chemical. The joint venture aims to supply high quality MCA using CABB's advanced technology.

1. CABB invests 50,000t/a MCA project and sets up joint venture with China
firms
Summary: CABB plans to invest in a 50,000t/a MCA project in China and will acquire
Jinwei Huasheng.
Tags: CABB, monochloroacetic acid, MCA, chemical material, food, personal care,
agrochemical, herbicide, herbicides synthesis, 2,4-D, MCPA, imazosulfuron, acetyls
In March 7, 2013, the German company CABB GmbH (CABB) and two domestic
enterprises, signed the Memorandum of Understanding (MoU) to establish a joint venture
company for the manufacturing and marketing of high-quality monochloroacetic acid
(MCA) in Jining, Shandong Province. The two domestic enterprises are Jining Gold Power
Co. Ltd (Jining Gold Power) and Jinwei Huasheng Chemical Co. Ltd (Jinwei Huasheng),
according to Herbicides China News 1303 issued by CCM in March.
The three companies will invest USD160 million (RMB1 billion) in a MCA project with a
capacity of 50,000t/a. The whole project is to be divided into several stages. The first
stage involves a 25,000t/a MCA expansion project. On March 1, 2013, it has been
approved by the Jining Environmental Protection Bureau. In addition to the original
capacity, the extension will permit Jinwei Huasheng to reach a 45,000t/a MCA capacity
after the first stage.
The MCA is an important chemical material used in the synthesis of a variety of products
in food, personal care and agrochemical industries. In the herbicides industry, the MCA
can be used to make various herbicides synthesis, such as 2,4-D, MCPA, imazosulfuron
and glyphosate.
For CABB, this marks an important step both in its strategy to further regionalize its
acetyls business and in its global production process. Dr. Martin Wienkenhöver, CEO of
CABB said in the MoU: "In Jining we have found Jining Gold Power a very strong partner
for an important joint venture supporting the new operation with a secure supply of key
raw materials, electric power and professional services." Dr. Uwe Brunk, General
Manager of Business Unit of Acetyls at CABB, added: "With the joint venture, CABB will
take a place in the world's largest MCA market with reliable, superior-quality products that
our customers are waiting for and reliable management and operation. We are thrilled to
be able to support our customers' development."
On the joint venture plan, CABB will acquire the existing company Jinwei Huasheng,
which currently possesses a capacity of 20,000t/a MCA. And then CABB will be the
majority owner of the joint venture, holding 67% of the joint venture shares, and the
remaining shares will be held by Jining Gold Power and Mr. Yan Donghua (Mr. Yan
Donghua is one of holder of Jinwei Huasheng). The joint venture will soon be able to
supply high quality MCA with the existing facilities of CABB and it has also started

2. planning an expansion project to supply an additional 25,000t/a of high-quality MCA
whose content reaches 99.9% with CABB's advanced proprietary technology.
Zuofei Xiao, Managing Director of Jining Gold Power and current Chairman of Jinwei
Huasheng said: "We have found CABB a leading international player in MCA business
and a recognized partner with leading-edge technology. We are looking forward to
strengthening the international collaboration in our industrial park in Yutai County." Mr.
Donghua Yan, current General Manager of Jinwei Huasheng, added: "CABB's support will
enable the joint venture to raise its technology to a new level and will help Jinwei
Huasheng develop into a leading company for high-quality MCA in Chinese market with
activities and moves in the international market."
CABB is a globally leading manufacturer of fine and specialty chemicals and customized
products. It is specialized in dealing with and safely handling corrosive materials and
complex chemical reactions.
Jining Gold Power, founded in 2003, deals in coal, thermal power and chemical raw
materials. At present, the company possesses a 30,000t/a caustic soda capacity. In 2012,
its total revenue was over USD265.32 million (RMB1.65 billion). Jinwei Huasheng was
invested by Jining Gold Powe and Mr. Yan Donghua in 2009.
Table Contents of Herbicides China News 1303:
Jiangsu Agro's 50,000t/a 2,4-D and 10,000t/a MCPA projects in progress
Vicome Lunan's 12,300t/a chloropyridines pesticides project in progress
Hubei Jiahe sets foot in the pesticide industry
Anhui Zhongshan completes its 3,000t/a herbicides TC projects
CABB invests 50,000t/a MCA project and sets up joint venture with China firms
Cyhalofop-butyl market becomes gloomy in China
Sluggish clomazone market will go on in 2013
Diuron TC price below USD6,000/t in March 2013
Current situation of propanil in China
Pure pyridine price keeps increasing in early March 2013
Australia to levy anti-dumping tax on Chinese 2,4-D
Export volume of glufosinate-ammonium product slipped slightly in 2012
Gansu Province's spring sown area in 2013 to reach 2.6 million ha
12 herbicides TC first registered by domestic companies in 2012
New registrations of herbicide technical in China in Feb. 2012
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Herbicides China News, a monthly publication issued by CCM on 15 , provides you with the
latest occurrences, exclusive analysis on the market trend as well as professional reviews on
competitiveness of companies, products and relative industries in China’s herbicide industry.
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