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Ecophos and Chanhen sign joint venture agreement

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World Fertilizer,

Ecophos has announced that it has signed an agreement with Guizhou Chanhen Chemical Corp. to establish a sino-foreign equity joint venture (JV), Chaneco Co. Ltd.

Ecophos will provide the technology for the construction of a green multi resources recycle industrial park located along the Yangtze river in Songzi, Hubei Province, China.

Once completed, the investment will be worth 5 billion RMB, and will process 2.2 million tpy of low grade phosphate rock into 400 000 t of high quality feed phosphate, 100 000 t of food grade phosphoric acid, 300 000 t of water soluble fertilizer, and 1.5 million t of high purity gypsum. Ecophos claims that the estimated annual sales will be approximately 6 billion RBM.

The JV will serve local and regional demand for specialty feed and fertilizer phosphates, and will address the need for high quality gypsum of Chinese construction and ceramic industries.

According to the statement, manufacture will be based on Ecophos-developed technologies that will maximise the value of the raw phosphate mineral obtained directly from the mine, and allow the production of pure gypsum. The project is in alignment with the strategy of the 19th Chinese National Party Congress, as well as the COP21 that advocate the implementation of innovative technologies in order to preserve the environment and use resources sustainably. This project addresses the burden of traditional phosphate processing: phosphogypsum and polluting emissions. It will allow improvement in yield and quality of end products.

Li Jin, Chairman of Chanhen group, said: “Ecophos and Chanhen will launch this exclusive cooperation in China and Southeast Asia, working together to create a new future for China’s green cycle of phosphorus industry.

“We are facing severe challenges in clean and sustainable development, and the phosphorus industry is in urgent needs of new green technologies to change the status quo.”

Mohamed Takhim, CEO of Ecophos, added that: “with the right partner (Chanhen) that shares the same values and support from the Chinese government with land, permits, utilities, port infrastructure and raw materials, Chaneco can become the market leader in China. The signature of this JV agreement is an important step in the realisation of Ecophos’ international growth strategy.”

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