Chinese Cooperation Agreement between Agrinos and Kingenta
Lysaker, Norway/Bejing, China, 7 April 2014. Agrinos AS (Norwegian OTC: AGRI), an international biological crop input provider and Kingenta Ecological Engineering Group Co Ltd, a Chinese compound and slow release fertilizer company listed on Shenzhen Stock Exchange, have entered into a cooperation agreement for joint development of the Chinese agricultural crop inputs market.
Under the terms of the agreement, the first step is distribution and marketing of Agrinos High Yield Technology® (HYT®) products in China through Kingenta’s distribution channels. Agriculture in China is looking for more resource efficient and environmentally sustainable solutions and Kingenta is taking part in this development by complementing its existing product offering with biological crop inputs.
Agrinos’ natural biological technologies function synergistically with conventional fertilizers and fertilizer applications to promote improved nutrient delivery to the plant. Agrinos’ HYT® products will be offered in combination with Kingenta’s products, while Kingenta will receive technological agronomy support from Agrinos in an adoption phase. The first purchase orders under the agreement have been signed and HYT® products are being shipped to China as preparation for a market launch later in 2014. Financial terms of the agreement were not disclosed.
“Chinese agriculture needs improved fertilizer and nutrient utilization and the market is open for new effective and sustainable solutions. Agrinos offers such solutions and we are pleased to team up with China’s leading compound and slow release fertilizer player. We believe the partnership will enable both Kingenta and Agrinos to better serve Chinese growers’ needs”, Mark Wang, Head of Agrinos China commented.
“Agrinos has been present in China since 2011 and spent time building a commercial platform. We have established local presence, we have demonstrated proof of concept via trials with local partners, and we have achieved early stage sales and distribution through different channels. The new agreement with Kingenta represents an important advancement and focusing of the sales and distribution of our biological products in China. The agreement also reflects the overall strategic focus of Agrinos, going to market with strong, established distribution partners in our prioritized areas” Kjetil Bøhn, Agrinos Chief Executive Officer commented.
Kingenta Ecological Engineering Group Co Ltd develops, manufactures and sells chemical fertilizers. The Company's products include compound fertilizers, controlled release fertilizers and other new types of fertilizers. With a nationwide distribution network, production capacity, and USD 1.6 billion in revenue and 10 000 employees in 2012, the company is one of China’s leading slow release fertilizer companies.
Agrinos is a biological crop input provider committed to improving the productivity and sustainability of modern agriculture. Agrinos’ range of High Yield Technology® (“HYT®”) products helps farmers to practice profitable agriculture by providing increased crop productivity, improved efficiency of conventional fertilizer, and a reduced environmental footprint.
Certified as organic and based on Agrinos’ proprietary technology, the HYT® products provide benefits by strengthening the soil-based microbial ecosystem, stimulating crop development at key points in the growth cycle, and boosting natural plant resistance to pathogens and threats. With solutions for a variety of crop categories, the technology comprising the HYT® products has demonstrated its value in third-party trials in key agricultural regions worldwide.
Ellen Cathrine Rasmussen
EVP, Business Area EMEA and Asia
+47 977 56 518
EVP, Corporate Communications and Investor Relations
+47 908 58 221