Sanonda Forms JV to Build Formaldehyde Plant    

Hubei Sanonda Co., Ltd (Sanonda, SZ: 000553) announced on February 26th to form a joint venture with its majority shareholder Hubei Sanonda Group for producing formaldehyde at Jingzhou of Hubei province. Both side signed an agreement on February 17th on the plant's operation.
   The 51/49 joint venture between Sanonda and the Group, named Jingzhou Lingxiang Chemical Co., Ltd., will have a registered capital of RMB10 million. The proposed plant is designed to produce 80 000 tons of formaldehyde per year, which is a feedstock for glyphosate production in Sanonda.
    Furthermore, both sides entered an additional agreement in February 23rd, under which Sanonda will purchase the land usage rights in Jingzhou Development Zone from Sanonda Group, for the formaldehyde plant.
   Sanonda Group is a leading agrochemicals maker in China, headquartered in Jingzhou, with an extensive product portfolio, including pesticides, fertilizers, veterinary drugs, feed, chemicals and medicines. The Group is controlled by ChemChina Agrochemical Corporation, a fully state-owned company, under China National Chemical Corporation (ChemChina). (CCR2008 No. 33, 2005 No. 16)