On November 22, Sinochem Fertilizer signed the “Contract on Jointly Building up a Fertilizer Logistics Center in Yantai” with Yantai Port in Chemsunny World Trade Center, to confirm that the two companies will jointly build up a fertilizer logistics center in the North of China, providing one-stop services including export, import, entrepot, distribution, transit transport and clearing.

　　According to the contract, Sinochem Fertilizer will hold 51% of the equity interest. Mr. Du Keping, CEO of Sinofert and Mr. Ji Shaobo, General Manager of Yantai Port signed the contract on behalf of the each party.

　　Sinochem Fertilizer will bring into the partnership its strong experience in distribution network operation and export and import of bulk cargo; whereas Yantai Port will bring in its advantages in logistics operations and locality.

　　The two parties aim to form complementary strengths by signing the contract, representing further development of the strategic partnership and Sinochem Fertilizer’s strategic integration of the upstream and downstream sectors. Sinochem Fertilizer.

　　The contract will entitle the parties to establish differential logistics network and lift the port logistics thresholds.

　　The logistics center will enhance the two companies’ core competencies, synergize upstream sourcing and downstream distribution, improve the comprehensive logistics operation efficiency and potentially provide for the professional logistics services for other agricultural inputs in future.

　　By far, Yantai Port has developed direct shipping links with over 100 ports of more than 70 countries and territories all over the world.

　　In 2006, Yantai Port handled over 100 million tons of bulk cargo and 1.152 million containers, ranking one of twelve national hundred-million-ton ports with its container handling power ranking one of the nation’s top ten.
 
　　Sinochem Corporation