Kailin Group and Beidahuang signed a strategic cooperation agreement 06-04-2019

In late of May, the deputy chairman and the general manager of Beidahuang, the largest agricultural enterprise in China, paid a visit to Kailin Group for inspection and exchange. As a result, both parties signed a strategic cooperation agreement for wider and profounder collaboration in the near future.

Xu Xueyang, the general manager of Beidahuang, expressed that Kailin Group, as a large phosphorus chemical enterprise in China, has not only made great contributions to the modernization of Chinese agricultural industry, but also played an important role in improving Beidahuang’s agricultural production level as well as increasing the production output.

According to the agreement, both parties will expand their cooperation in the aspects of self-operated products, finance, and trade. Beidahuang will provide food products of high quality for Kailin Group, while Kailin Group will offer fertilizer products and supply security in return. The both parties take great advantages of each other in order to achieve their goals in a strategic cooperation.

Kailin Group and Wenfu Group to prepare for integration

During the conference, He Guangliang, the chairman of Kailin Group and Wengfu Group, revealed that Kailin Group and Wengfu Group are preparing for integration.

According to Mr. He, in order to promote the resource integration of the two leading phosphorus chemical enterprises in China, improve the quality and effectiveness of their development, and accelerate the modernization of the phosphorus chemical industry in Guizhou, it is of great necessity for Kailin Group and Wengfu Group to be integrated. By integration, both groups can complement each other with their advantages, such as sharing market information, providing technical support, optimizing product layouts, among others.

After the reorganization, phosphogypsum, as a new building material industry of Kailin Group, will become a new point of economic growth to increase its proportion of comprehensive utilization. Meanwhile, the industrial chains of Kailin Group, such as phosphorus, coal, fluorosilicon, and green building materials, will create the effect of coupling induction and become an industry group, which is aiming to bring benefits in the future for Kailin Group.

Insiders speculate that both groups would probably come to merger and reorganization due to the forum regarding a win-win collaboration held by both groups in June last year. The same insiders already predicted that a merger of Kailin Group and Wengfu Group could increase the production capacity of phosphate to about 18 million tonnes and fertilizer up to 11 million tonnes, becoming the first phosphate rock-phosphorus fertilizer enterprise in China and the second of its kind in the world.

Kailin Group is a major player in the worldwide compound fertilizer market

Kailin Group is a large modernized enterprise group with diversified industries, such as mining, phosphorus chemical industry, coal chemical industry, chlor-alkali chemical industry, fluorine chemical industry, silicon chemical industry, trade logistics, building materials, and property service.

With production capacity of 10 million t/a phosphate rock and 5.73 million t/a fertilizer, Kailin Group has the second largest annual output of phosphate fertilizer with high concentration in China, the fourth in the world. In great demand all over the country, its products are also exported to Asia, America, the Middle East, and Australia. Kailin Group is regarded not only as one of the top three production bases of phosphate rock in China, but also a key enterprise to the production of compound fertilizer with high concentration.

For more information about China’s fertilizer market, please have a look at our monthly newsletter Phosphorus Industry China Monthly Report.

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