On November 6, 2019, China National Chemical Corporation Ltd. (“ChemChina ”) and SinoChem Group Co., Ltd. (“Sinochem”) held a joint signing ceremony at the second China International Import Expo (CIIE) in Shanghai, and announced the trading results.
Ning Gaoning, chairman of ChemChina and Sinochem, said at the signing ceremony that the CIIE is an important platform for China to safeguard the multilateral trade system and support economic globalization. ChemChina and Sinochem are both corporations with global presence. They base many of their business operations on international cooperation and global marketing. As beneficiaries of trade liberalization and economic globalization, they are also staunch supporters. At the first CIIE held last year, the two corporations signed a number of cooperation agreements with their partners for advancing industrial upgrading and high-quality growth by importing high-quality products. During this year’s CIIE, ChemChina and Sinochem made procurement-side and sales-side efforts in a bid to ensure the quality of commodities and improvement of structures.
At the signing ceremony, the two corporations signed cooperation agreements with 30 partners on site. On the procurement side, ChemChina’s domestic companies signed agreements with six foreign companies—Mercuria Energy Trading SA, Paramount Energy SA, Kao Trading Corporation Shanghai, Wogen Pacific Limited, Southland Resources Co., Ltd. and Sri Trang Agro-Industry Public Co., Ltd.. The procured products are crude oil, chemicals, ores, and natural rubber, and there are also technical cooperation projects. On the sales side, ChemChina encouraged its overseas companies to participate in the event, and five of them, namely Elkem in Norway, Syngenta from Switzerland, ADAMA of Israel, Adisseo of France, and KraussMaffei of Germany, participated and signed agreements. Pirelli of Italy also signed an agreement. The agreements cover projects in the fields of seeds, crop protection products, methionine products, PET Foam board production line and technical cooperation and partners include Wuhan University of Science and Technology, Yang Ling Agricultural Demonstration Zone, Shandong Golden Seeds Agricultural development Co., Ltd., Snowvalley Agricultural Development Co., Ltd., Kunming Agricultural Materials Co., Ltd., Zhejiang Agricultural Materials Group Co., Ltd., Sino-Agri Leading Biosciences Co. Ltd., BEV(Beijing Electric Vehicle Co. Ltd) , DFPV(Dongfeng Passenger Vehicle Company), China Resources Chemical Innovative Materials Holdings Co., Ltd., NEVC（National New Energy Vehicle Technology Innovation Center）, Beijing Engineering Research Center of Carbon Fibres and Inner Mongolia Mengniu Dairy (Group) Co., Ltd..
After joining ChemChina, these overseas companies focus more on the development of the Chinese market and have made more investment here. To help them have a better understanding of the Chinese market, ChemChina has offered guidance and helped them deliver products and services tailored to meet the needs of Chinese customers. Overseas enterprises are also encouraged to bring in good new products and technologies and they tend to have stronger confidence that intellectual property rights can be well protected in China. It was noted that all of the three overseas subsidiaries of ChemChina that have been listed in China gathered at the CIIE for the first time. They attach great strategic importance to the Chinese market and prefer growing hand in hand with Chinese customers and market and sharing the profits with the vast number of investors in China, said Ning.
Elkem of Norway (Booth 3C7-003) of ChemChina came to the CIIE for the first time this year. It put on display its 3D printing process for silicone materials. Silicone is an elastomer material with outstanding resistance to high and low temperatures, ultraviolet, and aging, as well as good biocompatibility. It would be extensively used in the field of 3D printing and in areas of medical care, automobiles, construction, robots, etc., advancing the structuring and upgrading of the whole value chain. As one of the earliest silicone materials companies in the 3D printing market, Elkem has founded three 3D printing laboratories in the United States, France and China respectively, with the aim of providing users with fast, flexible and customized solutions. It also showcased some high-tech applications of its silicone products in new energy vehicles, baby supplies, medical supplies, energy conservation and environmental protection.
In the agricultural sector, Syngenta of Switzerland (Booth 7.2C5-06) and ADAMA of Israel (SZ 000553, Booth 7.2C6-07) both came to the CIIE. As the world’s largest crop protection company and the third largest seed company, Syngenta brought good vegetable seeds to China. The fruits of these seeds — horn pepper, square pepper and cherry tomatoes — are fresh, plump and gratifying, attracting many visitors. These seeds boast excellent disease resistance and high yields, and the fruits they produce feature consistent shape and good taste. Syngenta has more than 150 years’ experience in vegetable seeds, and it offers over 30 crops and more than 2,500 vegetable varieties. In addition, every year, about 150 new varieties are launched to meet the needs of vegetable growers, retailers and consumers thanks to the company’s continuous efforts on innovation. Focused on “Quality and Beautiful Fruits and Vegetables”, ADAMA brings MERPAN products to CIIE which allow apple growers to remove the bags but still protect apples from pests and diseases while keeping their surface fresh and shining. Farmers cannot only save their labor costs but also improve the fruit grading. The series are technically innovative for the broad spectrum and the simplicity brought to agriculture. Moreover, ADAMA is introducing its flagship nematicide into China. Beyond its efficiency to kill underground nematodes, the product has no harm against microorganism and no damage to the ecological structure in the soil. It also leaves no residue onto crops.
Adisseo of France (SH 600299, Booth 7.2C6-06) under ChemChina signed cooperation agreements with heavyweight customers such as New Hope Group, Zhengbang Group and Fujian Sunner to expand cooperation started at the first CIIE. This year, Adisseo has signed a strategic cooperation agreement with Mengniu Group, a leading dairy company in China as well as in the world. The product involved in this agreement is Mester?, an effective methionine product for ruminants and essential nutrient for the high yield, health and reproduction of dairy cows, and can reduce nitrogen emissions. Adisseo believes that China has broad market prospects for dairy consumption and cow breeding for nutrition. Being a subsidiary of ChemChina enables Adisseo to go deep into the Chinese market and bring top-notch talents, cutting-edge technologies, products, industrial standards and services into China, as CEO of Adisseo Jean-Marc said. Adisseo has founded a production base in China, creating a more globalized business layout. Today, it exports more than half of the products produced in its Chinese facilities, with its market share significantly increased.
As an important brand of ChemChina’s rubber business, Pirelli participated the ceremony today and signed up the MOUs on future OE cooperation with BEV (Beijing Electric Vehicle Co. Ltd.) and DFPV (Dongfeng Passenger Vehicle Company).As a leading player of High Value tyre segment, Pirelli has kept close partnerships with top tier car manufacturers worldwide. Meanwhile Pirelli applies local-for-local policy in China, seeking more potential cooperation with international and local carmakers. Thanks to these valuable partnerships, Pirelli seizes the developing trend of the auto industry, which is electric, connected, shared, autonomous, and continuously improves the technologies to face the upcoming challenges together with the car manufactures.
The CIIE also had KraussMaffei (SH600579, Booth 3A6-006), a subsidiary of ChemChina. It was the company’s new presence in the Chinese market since the announcement of brand integration in July this year. KraussMaffei brought here three dimensions with new motto “pioneering plastics”: circular economy, digital pioneer and new technology. The applications for circular economy attracted much attention. The Edelweiss blending extrusion system specially designed by KraussMaffei for plastic recycling aims to provide a close-loop solution for plastic recycling. Its main advantage lies in that the recycled waste plastics can be modified into high-quality, cost-effective and stable end products, making recycled materials more attractive to recycling companies and plastic manufacturers. It was also the first time that this system was introduced to China.
We buy what we need and sell what others want. ChemChina was busy buying and selling at the CIIE and this was an epitome of economic globalization and trade liberalization. As a corporation engaged in the real economy, ChemChina will continue to share business opportunities through economic and trade cooperation, seek mutual benefits and participate in and contribute to the global market, said Ning.