Jiangyin Foreversun Chemical Logistics, a subsidiary of Singapore firm Hengyang Petrochemical Logistics, has signed an equity transfer agreement with Odfjell Terminals Asia to acquire a 49% stake in Odfjell Nangang Terminals in Tianjin Port, China.
Odfjell Nangang Terminals is a joint venture between Odfjell Terminals Asia and Tianjin Nangang Industrial Zone Port, and started operations in 2016. It has 26 tanks with a total capacity of 137,800 m3 and three ship docks. Hengyang as not revealed a potential purchase price but notes that the paid-up registered capital of Odfjell Terminals Asia’s 49% stake is RMB 167.58 million (€23.7 million).
While parent company Hengyang wants to increase its competitiveness and influence in China’s petrochemical industry, Jiangyin Foreversun is seeking to diversify operations beyond petrochemical logistics alone to a full range of services. This might include developing a smart logistics system, creating a logistics channel for liquid products, and moving into supply chain management. It operates five hazardous chemical storage areas in the Yangtze River basin. Hengyang Petrochemical believes that Odfjell Nangang Terminal is underutilised and would like to make full use of the facility.
The sale is still subject to a number of closing conditions and regulatory approvals.
(Source: Tank Storage Magazine, June 29-2022)