Hanfeng To Expand Chinese Venture With Shandong Mingshui Chemicals
TORONTO — Hanfeng Evergreen Inc. (TSX:HF), a producer of slow and controlled release fertilizers in China, says it will build another polymer coated urea production line with its 50/50 joint venture partner, Shandong Mingshui Great Chemical Group.
The expansion will cost about $5 million, with each partner paying their share, Hanfeng and its partner, known as Minghua, said Monday.
"Since construction commenced at the first 100,000 (tonnes per year) PCU facility, we have experienced significant demand from our existing customers for slow release products," said Jianzhong Shi, president of Minghua.
"To satisfy the growing demand, Hanfeng and Minghua have agreed to construct the second 100,000 (tonne) facility as we expect customer orders will outstrip our production capacity in the near term."
Construction of the new line will begin in August and is scheduled for completion in the third quarter of 2010.
Hanfeng is the largest producer of slow and controlled release fertilizers in China.