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A digital signing ceremony was conducted on August 28 between Sichuan Hebang Biotechnology Co., Ltd. (603077.SH), BKMS, and AKR. Hebang intends to invest $800 million in JIIPE Industrial Estate, Gresik, East Java Province, Indonesia, to construct a chemical production facility.
Mr. Zeng Xiaoping, president of Hebang, and Mr. Bambang Soetiono, president director of BKMS, signed the Conditional Land Sales and Purchase Agreement. Mr. Haryanto Adikoesoemo, chief executive officer of AKR Group, signed the Letter of Intent. BKMS will provide industrial land for the Hebang initiative in Indonesia. Hebang and AKR proposed establishing a JV entity in JIIPE, with Hebang holding 90% of the shares and AKR 10%, to invest in, construct, and operate the Indonesia project.
Hebang Biotechnology announced on August 30 that the project will require 800 million USD and 67 hectares of land to produce sodium carbonate, ammonium chloride, and glyphosate. Carbonate of sodium, also known as "soda ash," is a common chemical basic material. After construction, the facility will be able to produce 600,000 tons of sodium carbonate annually. Ammonium chloride is a crucial agricultural chemical fertilizer that provides nitrogen elements for plant growth and is the most effective fertilizer for palm trees. After the project is completed, it will have an annual production capacity of 600,000 tons of ammonium chloride. Glyphosate is the most extensively used and manufactured herbicide on earth. After construction, the enterprise will have an annual production capacity of 200,000 kilograms of glyphosate.
As a publicly traded company that integrates chemicals, photovoltaics, and minerals, Hebang Biotech has superior technology, talent, and operational experience in the domestic and international markets for the products. The company's existing soda ash products hold a commanding market share and are the largest supplier of glyphosate in the world. China's most important trading partner along the "Belt and Road" investment corridor is Indonesia, which is also a significant country along the "Belt and Road" investment corridor. The Indonesian government has designated JIIPE Industrial Park as a special economic zone. It is the first comprehensive industrial complex with a deep-sea facility in Indonesia. The park is managed by PT BERKAH KAWASAN MANYAR SEJAHTERA (abbreviated as BKMS). PT AKR Corporindo Tbk. (abbreviation: AKR) is listed on the Indonesia Stock Exchange (IDX) under the ticker symbol AKRA.IJ. It is primarily employed in the global distribution and commerce of chemical and petroleum products. It is the largest private petroleum and fundamental chemical distributor in Indonesia.
Hebang Biotechnology Co., Ltd. capitalizes on the geographical advantages of JIIPE in Surabaya, Indonesia, and Indonesia's resource advantages through overseas investment and the construction of factories to expand its current market and increase its products' international influence. In the next phase, the company will vigorously promote the application of pertinent approval documents, reinforce project docking and implementation, actively seek markets, and pursue efficiency so that the construction results will be beneficial to both China and Indonesia.