Jinshi to Acquire 35% Equity in Tiancheng     

On November 24th, Shijiazhuang Jinshi Chemical Fertilizer Co., Ltd. (Jinshi) entered an agreement with Hebei Tiancheng Chemical Co., Ltd. (Tiancheng) on acquiring a 35% interest of Tiancheng.
   Jinshi, a large scale fertilizer producer located in Shijiazhuang of Hebei province, is controlled by Shanxi Jincheng Anthracite Mining Group Co., Ltd. The company is expanding its businesses by acquisitions. In January 2007, Jinshi purchased a 51% interest in Hebei Jinyuan Chemical Co., Ltd. And this September, the company acquired a 51% interest in Hebei Jiheng Group Co., Ltd.
   Tiancheng, sited in Qinhuangdao city of Hebei province, is a matching company with Sino Arab Chemical Fertilizers Company Ltd., which is a major compound fertilizer producer in China. Tiancheng can annually produce 180 thousand tons of synthetic ammonia to meet the demand in northeastern China. Selling the 35% equity will help Tiancheng ease fund pressure and expand production.