Juhua Group and Feiyuan Chemical's equity cooperation have officially signed a contract!
On January 20th, Juhua Group and Feiyuan Chemical held a signing ceremony for equity cooperation in Zibo City, Shandong Province.
This equity cooperation will fully leverage the integration effect of the synergy, complementary resource advantages, and complementary market space layout between Juhua Group and Feiyuan Chemical Industry Chain, enhance the competitiveness of both parties, and further enrich Juhua Group's industry chain, strengthen, optimize, and expand its core industry, enhance its core industry competitiveness and market competitiveness, which is of strategic significance for supporting Juhua Group's sustainable profitability and high-quality development.
Why can two companies fall in love at first sight?
The equity cooperation between Juhua Group and Feiyuan Chemical has shown an efficient progress, with only three to four months from inspection to signing and landing. Both sides called it "love at first sight". So, what is the point at which this "fate" can efficiently achieve tacit understanding?
Juhua Group is the first large-scale chemical joint venture in Zhejiang Province. After 64 years of development, the company's main business has covered multiple fields such as fluorine chemical industry, chlor alkali chemical industry, petrochemical materials, etc. It is a super large chemical joint venture in China and the largest advanced manufacturing base for fluorine chemical industry in the country. We have successively conquered multiple core technologies in the fluorine refrigerant industry, cultivated a number of single champion products and "specialized, refined, and innovative" enterprises, and achieved the world's largest market share in 16 major categories of products such as refrigerants, methane chlorides, and PVDC. At present, a diversified industrial pattern has been formed, including large-scale production of basic raw materials, serialization of intermediate products, and refinement of downstream products, making it a leading enterprise in China's fluorine chemical industry. In just over 60 years, we have achieved remarkable results and become a leading player in the national and even global industries, which can be described as having strong strength and making rapid progress.
Feiyuan Chemical is not only a leading enterprise in the new materials industry of Gaoqing County, but also one of the top 100 comprehensive and industrial enterprises in Zibo City. It has a relatively complete fluorine chemical and epoxy resin industry chain, with main products including difluoromethane (R32), pentafluoroethane (R125), tetrafluoroethane (R134a), etc. Its third-generation refrigerant production capacity ranks among the top in the country.
From this, it can be seen that one of the most important reasons why the two companies can achieve success is the high degree of alignment between their strategic direction, industrial chain, and products. For Juhua Group, acquiring Feiyuan will enrich its core industry fluorine chemical business. Feiyuan Chemical's third-generation refrigerants, fine chemicals and other products have strong synergy and complementarity with Juhua Group's industrial chain, which can leverage the integration effect of industrial chain synergy, resource advantage complementarity, and market space layout complementarity, thereby optimizing the industrial structure, enhancing competitiveness, and improving the company's profitability.
As the relevant person in charge of Juhua Group said, "Only through open cooperation can enterprises go further and better."
For Feiyuan Chemical, Juhua Group not only brings improvements in research and development capabilities and technological content, but also promotes the company's enterprise management, process standardization, corporate culture, production process control, and other aspects. The person in charge of Feiyuan Chemical told reporters that the first thing for both sides to clarify is customer management, market information exchange, and market location coordination, laying the foundation for a smoother integration and development in the future. "We both have corresponding project reserves and consensus on the fluorine chemical industry, and the exploration of new products is also ongoing," the person in charge said.
The collaboration between Juhua Group and Feiyuan Chemical is integrated in terms of resources, open in the market, and expanding in quotas. The highly integrated development will bring about a "1+1>2" effect, so there must be new expectations for market share occupation.