Toronto-Hanfeng Evergreen Inc. said April 20 that it has received written notice from Agrium Inc. exercising its option with Hanfeng to purchase 50 percent of the outstanding shares of Hanfeng Slow Release Fertilizer (Canada) Co. Ltd. (Subco). The option was granted to Agrium in conjunction with Agrium granting Hanfeng a sulfur coated urea (SCU) license for use in China, and was included as part of the agreement in which Agrium became a 19.6 percent shareholder of Hanfeng in April 2007. Subco develops new SCU projects and joint venture opportunities in China. The exercise price will reflect Subco’s investment in SCU projects in China from April 18, 2007, until the exercise date, plus a commercial rate of interest. During the specified period, the holding company has established one 50,000 mt/y plant in partnership with a local urea producer under a jv structure in Shanxi, China. Hanfeng is the largest producer of slow- and controlled-release fertilizers in China.
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