American Vanguard has announced that its international subsidiary, AMVAC Netherlands BV, has joined with Chinese-based Huifeng Agrochemical subsidiary Shanghai Focus Biological Technology to establish a technology R&D-focused joint venture based in Hong Kong. This enterprise, Huifeng AMVAC Innovation will focus on technology transfer between the co-owners, including the development of new, proprietary agrochemical formulations and precision application systems for crop protection.
Through a series of joint service agreements, Huifeng AMVAC Innovation will provide a platform for the co-owners to leverage each company’s technological capabilities. Additionally, each owner will benefit from the other party’s established market experience in their respective home territories. Such deep understanding of diverse market segments in Asia and the Americas provides the owners with an outstanding foundation for continued international success. The new venture is structured with each party owning 50 percent and it is expected that this entity will grow through additive technology investments in upcoming years. AMVAC's Asia president, Lawrence Yu, will assume overall responsibility for the company as the managing director supported by Li Ping as CFO.
“This new venture is a springboard for our strategic international expansion initiative,” said Eric Wintemute, chairman and CEO of American Vanguard. “In Huifeng, we have found a highly successful, innovative technology-based, extremely well-positioned partner with which to pursue a mutually beneficial collaboration. Huifeng's president, Mr. Zhong Hangen has led his company to become one of the fastest growing, most profitable and dynamic agrochemical companies in China. He has placed a premium on innovative technology development and excellent marketing capabilities. I believe that this technology-focused joint venture will lead to a broader range of market access and coordinated supply possibilities that will allow both companies to truly expand their horizons.”
“This venture will allow Huifeng to work closely with a very successful crop protection company that has considerable presence in the Americas market,” said Zhong Hangen, president and founder of Huifeng Agrochemical. “AMVAC clearly has the skilled talent, manufacturing capabilities and product portfolio to contribute greatly to this partnership. With many tremendous growth opportunities globally, I look forward to seeing this venture expand and evolve with additional technology investments. I anticipate that incremental capital for a variety of promising precision application and proprietary chemical projects could justify additional funding of perhaps $50 million dollars over a period of years in the regional territories that will be served by this venture. We expect that such projects can proceed promptly and efficiently.”
No more results found. Through a series of joint service agreements, Huifeng AMVAC Innovation will provide a platform for the co-owners to leverage each company’s technological capabilities. Additionally, each owner will benefit from the other party’s established market experience in their respective home territories. Such deep understanding of diverse market segments in Asia and the Americas provides the owners with an outstanding foundation for continued international success. The new venture is structured with each party owning 50 percent and it is expected that this entity will grow through additive technology investments in upcoming years. AMVAC's Asia president, Lawrence Yu, will assume overall responsibility for the company as the managing director supported by Li Ping as CFO.
“This new venture is a springboard for our strategic international expansion initiative,” said Eric Wintemute, chairman and CEO of American Vanguard. “In Huifeng, we have found a highly successful, innovative technology-based, extremely well-positioned partner with which to pursue a mutually beneficial collaboration. Huifeng's president, Mr. Zhong Hangen has led his company to become one of the fastest growing, most profitable and dynamic agrochemical companies in China. He has placed a premium on innovative technology development and excellent marketing capabilities. I believe that this technology-focused joint venture will lead to a broader range of market access and coordinated supply possibilities that will allow both companies to truly expand their horizons.”
“This venture will allow Huifeng to work closely with a very successful crop protection company that has considerable presence in the Americas market,” said Zhong Hangen, president and founder of Huifeng Agrochemical. “AMVAC clearly has the skilled talent, manufacturing capabilities and product portfolio to contribute greatly to this partnership. With many tremendous growth opportunities globally, I look forward to seeing this venture expand and evolve with additional technology investments. I anticipate that incremental capital for a variety of promising precision application and proprietary chemical projects could justify additional funding of perhaps $50 million dollars over a period of years in the regional territories that will be served by this venture. We expect that such projects can proceed promptly and efficiently.”