Sinofert Holdings Ltd. on April 10 announced that its indirect subsidiary, Sinochem Fertilizer, will sell its nitrogen fertilizer business unit to associate ETEXE Technologies for about 41.5 million yuan. The proceeds will be used for working capital.
Sinofert said that since April 2022, except for the sale of nitrogen fertilizers to clear existing inventories and trading to meet national requirements, Sinochem Fertilizer has ceased to operate the nitrogen fertilizer trading business.
Since the unit had no production capacity of its own, the company said it was required to expend a large amount of money to procure product and that profits have been at a “low level.” Sinofert said the disposal will not impact Sinochem’s ability to sell other products, such as phosphate and potash. It said those businesses have a stable client base and distribution system.