On November 28, Sinochem Corporation and Sinochem Fertilizer Company Limited signed an Equity Interest Transaction Agreement, per which Sinochem Fertilizer would acquire the interest of two fertilizer companies under Sinochem Corporation, namely 40% of the interest of Tianji JV at RMB 208.8 million and 51% of the interest of Sinochem Shandong at RMB 56.38 million.

Tianji JV was established in August, 2003 with an annual production capacity of 600, 000 tons of granular urea whereas Sinochem Shandong was put into operations at the end of 2004, with an annual capacity of 600,000 tons of compound fertilizer.   

Prior to the two transactions, Sinochem signed an agreement with Sinochem Fertilizer on October 17th to transfer Sinochem’s all 18.49% of the interests of Saltlake Potash to Sinochem Fertilizer. 

Sinochem Fertilizer is a wholly-owned subsidiary of Sinofert Holdings Limited, a public company in Hong Kong. The foregoing three transactions will not be closed until are approved by the independent shareholders meeting of Sinofert and the concerned government agencies.