Toronto-Hanfeng Evergreen Inc. reports that it has completed a definitive joint venture agreement with Beidahuang Agriculture Co. Ltd. whereby Hanfeng will supply up to 200,000 mt/y of value-added fertilizer products (slow and controlled release fertilizers, CarbonPower coated urea) to a jv to be operated by Beidahuang and Hanfeng. Under the terms of the agreement, the value-added fertilizer products will be sold to the jv at market prices for resale in Beidahuang’s distribution network. The jv also plans to distribute additional value-added fertilizers by leveraging Hanfeng’s core technologies, Beidahuang’s distribution network, and third-party resources. In addition, the jv will further cooperate in the areas of research and development, promotions, and field trials. Hanfeng will own 40 percent of the jv. “Beidahuang is the premiere agricultural company in China, producing approximately 60 percent of the rice seeds used in domestic farming. They supply food and grains to several key regions of China, as well as the military, and are responsible for maintaining stable grain prices. We are honored to be the first company Beidahuang has chosen to partner with and look forward to a long and productive partnership with them,” stated Xinduo Yu, Hanfeng president and CEO. Hanfeng also announced that a feasibility study has been initiated on the previously announced 150,000 mt/y multi-product jv production facility. The proposed 50/50 jv facility would be built at Beidahuang’s Haolianghe urea production plant located in northern Heilongjiang province. Once completed, the facility would provide value-added products to Beidahuang’s nearby reclamation lands. The feasibility study is being prepared in advance of the definitive agreements for the facility, and is expected to be completed within 90 days.
Transparency Across the Fertilizer Value-Chain