Source:chinanews.com, Kunming, 12/10/2016, by Ma Qian
On 12/10, Yunnan Haikou Phosphate Co., Ltd., a joint venture cofounded by YTH and ICL, is officially established in Kunming. Li Jiheng, the secretary of CPC Yunnan Provincial Committee, and Nir Gilad, the President of ICL unveiled the nameplate of the company.
The establishment of YPH is a result of joint efforts by YTH and ICL, representing a great leap forward of the communication betweenYunnan and Israel”, said Li Jiheng. And he remarked thatAs a world-leading comprehensive cooperation in chemical industry, ICL has advantages in terms of marketing, technology, management, R&D, etc., and its technical innovation and resource comprehensive utilization is among the top around the world. On the other hand, YTH is the largest phosphate mining and beneficiation enterprise in China, and the enterprise who reserves the most phosphate resources in Yunnan Province. Being a new win-win achievement of the cooperation between Yunnan and Israel, the JV between ICL and YTH is of great significance, and will leave a profound influence. Li Jiheng pointed out that CPC Yunnan Provincial Committee, Yunnan Provincial Government and other related departments will provide the two partners efficient, pragmatic, and convenient services. The support from the authorities helped the JV to grow stronger and bigger. Additionally, the support from the authorities has also given a hand to the upgrade of phosphate industry in Yunnan Province. It has driven the whole industrial chain to a better and faster development. “We also hope that we can take this as a starting point, to further enhance the cooperation between Yunnan and Israel to a more multi-dimensional, and more inclusive level.”
Nir Gilad said that since the start of the cooperation between the two partners, we have been sharing a high-level mutual trust andboth of us have been willing to help each other. ICL will further strengthen its advantages and experience in process technology, product R&D, company management, so as to boost the development of the JV. “There are still enormous potentials in the cooperation between ICL and Yunnan, we would like to take this JV as a turning point, to expand our investment in Yunnan, and conduct more cooperative projects in areas of new energy vehicles, IT, semiconductor, shipping, etc., to help the development of Yunnan’s society and economy, and achieve a beneficial and win-win situation.
On 16/12/2014, YTH and ICL has signed the cooperation agreement.In the agreement, YPC, a subsidiary of YTH gave out all the properties and business of Haikou Mine and established the JV with ICL; then the JV finished the acquisition of Three Circles and Tianchuang, and finally completed the composition of the JV: a Sino-foreign joint venture that attached great importance on the development of fine phosphorus chemicals and specialty fertilizers. On 12/10/2015, ICL purchased 50% equity of YPH in cash, and YPH officially became aSino-Foreign joint venture. According to the investment plan,in the next five years, YPH will invest 2 billion RMB on new projects and technic modification projects, focusing on thedevelopment of specialty fertilizer, fertilizer for special purpose, and fine phosphorus chemicals. It is estimated that in 2018, YPH will realize a revenue at 5 to 6 billion RMB, with the profit being 600 million RMB, which means at that time, YPH will become the leader in fine phosphorus chemicals industry in Asia-Pacific Region.