Wynca Chemical Strengthens Herbicide Business by Buying Stake in Xinyi Zhongkai  

Zhejiang Wynca Chemical Industrial Group Co., Ltd. (Wynca Chemical, SH: 600596) announced September 4th to buy a 20% stake in Xinyi Zhongkai Agrichem Co., Ltd. from Zhongkai Investment Company Limited for a consideration of RMB10 million.
   Xinyi Zhongkai, founded in 1996 and located in Xinyi of Jiangsu province, is specialized in R & D, production and sales of herbicides. It has capability of producing 2 000 tons of quinclorac technical per year, holding the leading position in China. The company also manufactures acetochlor technical, propisochlor technical, and about 30 ranges of pesticide formulations with a processing capacity of 15 000 t/a.
   Xinyi Zhongkai now is a 74.99 : 25.01 joint venture between Zhongkai Investment and Canada KAMA Enterprises Ltd. It gained RMB66.45 million in sales and RMB9.44 in net profit respectively for H1 2009.
   Wynca Chemical is already a quinclorac technical supplier in China with a capacity of 400 t/a. And Wynca Chemical will integrate Xinyi Zhongkai into its existing operations and balance their respective portfolios to boost the offering and raise profit-earning ability, Wynca says.