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COMPO EXPERT and Hubei Xinyangfeng Fertilizer enter partnership

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World Fertilizer,

COMPO EXPERT GmbH has announced that it has agreed to enter a strategic partnership with Hubei Xinyangfeng Fertilizer Co. Ltd.

COMPO EXPERT is a manufacturer of specialty fertilizers for commercial use and is a portfolio company of the XIO Group global private equity firm. Xinyangfeng, meanwhile, is a fertilizer manufacturer in China. In future, both parties will engage in close and comprehensive cooperation in technology development, localised production and joint commercialisation of efficient and environmentally friendly fertilizers for the growing Chinese market under the brands Blaukorn® and NovaTec®.

Thomas H. Ahrens, the CEO of COMPO EXPERT, said: "China is a key building block on our way to become the leading manufacturer of specialty fertilizer for commercial use worldwide. Xinyangfeng is an outstanding fit for us as a strategic partner and the partnership agreement we signed today is a key milestone in the consistent implementation of our global growth strategy. I am firmly convinced that our cooperation will be a success and will create value for both companies as well as Chinese agriculture as a whole."

Through the cooperation, Xinyangfeng will become COMPO EXPERT’s exclusive partner for the Blaukorn and NovaTec brands in China. Xinyangfeng holds a strong position in the Chinese fertilizer market, which will be of benefit to COMPO EXPERT. Both parties will offer a product series of nutrients for cash crops and high value crops that meet Chinese farmers’ growing requirements in terms of both crop yields and sustainability. For this purpose, Xinyangfeng will reportedly develop a local manufacturing facility in Zhonglin in the Hubei province. The resulting short transport routes will help to ensure that production is both efficient and environmentally friendly.

The President of Xinyangfeng, Bin Huang, said: “We are pleased with our strategic partnership with COMPO EXPERT. It combines two outstanding companies that are an excellent fit for one another. Xinyangfeng's decades of experience and our extensive distribution network in China are perfectly complemented by the great technology and production expertise of COMPO EXPERT. Together we are now well positioned to meet the growing demand of Chinese farmers for modern fertilizers."

COMPO EXPERT offers a varied choice of fertilizers for commercial use. The strategic partnership is centered around two specific products: Blaukorn, which is granular NPK; and NovaTec, which is stabilised, granular NPK. The company claims that the Chinese market offers excellent growth potential, particularly for high quality and environmentally friendly fertilizer products with high efficiency.

Murphy Qiao, Partner and Head of Asia of the XIO Group, said: “Since the beginning of 2015 we have been supporting the management of COMPO EXPERT in the development and implementation of a value-generating global growth strategy. The company has expanded its leading position in Europe as well as in Latin and South America. The strategic partnership with Xinyangfeng is a win-win-cooperation for both companies. It provides COMPO EXPERT with extended access to the growth market of China, while Xinyangfeng will significantly expand its production know-how and product range."

Joseph Pacini, the CEO and Partner of XIO Group, added: "COMPO EXPERT's strategic partnership with Xinyangfeng exemplifies XIO Group's strategy to identify and invest in market-leading and high performing businesses located across Europe and North America and to help these companies in capitalising on untapped opportunities in fast growing markets, particularly those in Asia."

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