The Canadian Press
TORONTO - Hanfeng Evergreen Inc. (TSX:HF) said Monday it has signed two deals to build new fertilizer plants in China and Indonesia.
The Toronto-based company said it signed one deal to form a 50-50 joint venture with Shandong Mingshui Great Chemical Group to build and operate a 100,000-tonne-per-year polymer-coated urea plant in Shandong province China.
The PCU facility is expected to be completed by April 2009 and will utilize Hanfeng's patented polymer coating technology, which was developed internally by its R&D team in China.
The company estimated the plant would cost $11.8 million to build and said the cost would be split evenly between the partners.
Meanwhile in Indonesia, Hanfeng said it has signed a deal with PT Matahari Kahuripan Indonesia, an Indonesian palm oil and tobacco producer, and PT Sumber Agrindo Sejahtera, an agricultural distributor in Indonesia.
The joint venture will build and operate a 200,000 tonne per year slow release NPK fertilizer plant in Surabaya, Indonesia.
The cost of the $30-million plant will be split based on ownership percentage with Hanfeng paying 34 per cent, Matahari Kahuripan Indonesia 33 per cent and Sejahtera Group 33 per cent.
The products produced by the NPK plant will target the tobacco and palm oil markets.