Bluestar seeks overseas expansion for growth
Updated: 2007-08-10 11:26
China National Bluestar (Group) Corp, one of the nation's largest chemical companies, eyes overseas expansion as a key driver of its development.
"Through overseas mergers and acquisitions, Bluestar has greatly enhanced its technology and management level. We will continue the overseas strategy to make the company more multinational," said Ren Jianxin, president of China National Chemical Corp, parent of Bluestar.
Bluestar has 15 plants and seven research and service institutes overseas apart from 25 plants and four research and development institutes in China. The company's annual sales revenue has surpassed 30 billion yuan.
In early 2006, Bluestar acquired France-based Adisseo Group, a world-leading animal nutritional feed firm specializing in producing methionine, vitamin and biological enzyme.
The deal, which has extended Bluestar's product line, made the company the world's second-largest producer in the field of methionine.
China, though a big agricultural country, could not produce methionine before and imports in 2005 stood at 120,000 tons. Experts predict that demand will grow between 10 and 15 percent each year in the coming years.
In October 2006, Bluestar bought French company Rhodia's organic silicon business, including its patents, manufacturing equipment and distribution channels as well as the company's sulphide business.
The acquisition has upgraded Bluestar's organic silicon business, making it the third largest producer in the world. "We plan to become the world's No 2 in two years," said Ren.
With the two deals, Bluestar has become the largest Chinese investor in France.
"We highly value the achievement the companies have made in the past," said Ren.
The company has been focusing on the chemical products and new materials businesses, which has resulted in the success of mergers and acquisitions, he said.
It will continue to talk with some foreign firms for investment opportunities. It is also considering introducing some strategic investors, according to sources close to the company.
The company will further integrate its businesses and then plans to list in its entirety, added the sources.
Established in 1984 with only 10,000 yuan, Ren has led the company to become the nation's leading chemical products and new materials manufacturer in 20 years.
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