1. Sinopec Sichuan Vinyl Works and Linde Build Gas Plant in Chongqing
On April 3rd, 2009 Sinopec Sichuan Vinylon Works announced it has signed a contract with Linde Group to jointly build gas plant and produce industrial gases for the long-term supply to Sinopec its chemical complex. This collaboration will result in an initial investment of approximately Euro 50 million.
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2. CNPC Inked US$5 BLN Loan-for-Oil Deal with KMG
China National Petroleum Corporation (CNPC) signed in Beijing a framework agreement with Kazakh state oil and gas company KazMunaiGas (KMG) on promoting oil and natural gas cooperation and in supporting to lend US$5 billion to KMG on April 16th.
The two companies intend to jointly purchase a 49% stake in Kazakhstan-based MangistauMunaiGaz (MMG), whose 100% stake is held by Central Asia Petroleum. On the same day, CNPC and KMG together entered into an acquisition agreement with Central Asia Petroleum. No details about the agreements were disclosed by CNPC, till April 20th.
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3. Chinese Drug Makers Post Higher 2008 Earnings
Sanjiu Medical & Pharmaceutical Co., Ltd. (SZ: 000999)'s sales rose 24.12% to RMB4.32 billion in 2008, according to its annual results released on March 18th. Net profit jumped 77.41% to RMB500 million, and earnings per share gained 75.86% to RMB0.51.
Sales in Sanjiu's drug business rose 18.8%. Among them, OTC sales climbed 13.4% while Traditional Chinese Medicine (TCM, prescription) gained 37%. Although sales for antibiotics remained fast growth, the combined sales for the antibiotics and general drugs segment rose only 16.8% as active pharmaceutical ingredients sales fell.
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4. New Grain Program Brings Hopes to Agrochemicals Makers
On April 8th China's State Council nodded a program to increase the grain production capacity by 50 million tons per year through 2009-2002. The news brings new hope to the fertilizer and pesticide producers.
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5. Stimulus Program Details: Possibly Encouraging M&A Overseas
After the State Council approved the stimulus package in principal for the petroleum and chemical industry, including in the RMB4 trillion investment plan on February 19th, an expert group organized by the related governmental departments is hurrying to prepare the details for the package, planning to issue it publicly mid-year. "Petrochemical firms that acquire business overseas may get funding support from the government," a member of the group disclosed. "The budget may be around ten billion RMB, in the form of subsidies or a preferential interest loan. This item has been listed in the proposed details, and is expected to be approved."
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