23 Dec 2008 08:29
December 23, 2008
Acron Acquires Chinese Distribution Company
Agronova International Inc. - Acron's U.S.-based subsidiary - completed the registration of acquisition of Beijing Yong Sheng Feng Agricultural Means of Production Co., Ltd., a Chinese-based company licensed by the state to distribute in China mineral fertilisers, both imported and domestically produced, and to sell other chemicals. All licenses and approvals required for a foreign-invested company have been obtained. Yong Sheng Feng has direct contracts with wholesale and retail fertiliser distributors all over China.
Alexander Popov, the chair of Acron's Board of Directors, commented on the deal: "This acquisition will allow Acron to further strengthen its position in China, the largest fertiliser market in the world. Through Yong Sheng Feng, we can supply our products to China, position and promote them, and render related services to distributors and farmers. Moreover, we can bring third party producers of fertilisers, both local and international, to our Chinese distribution network."
For Further Information:
Acron Elena Kochubey - Tel: +7 (495) 777 08 65Corporate Communications
Ilya Popov - Tel: + 7 (495) 411 55 94 Chief Expert Information and Research Department
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2007, the Acron group's total fertiliser sales volume was 4.4 million tonnes. The Company's key markets are Russia, China and other fast growing developing markets of South Asia, Latin America and former Soviet Union.
Acron employs over 12,000 people in Russia and China. In 2007 the Acron group's consolidated revenues under IFRS were RUB 31,105 million (US$ 1,267 million), and net income was RUB 5,668 million (US$ 231 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Company operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Company owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).