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Chinese liquid organic fertilizer company Xi 'an CGA group said, it had raised revenue by 40% this year, but the merger was put on hold

Chinese liquid organic fertilizer company Xi 'an CGA group said, it had raised revenue by 40% this year, but the merger was put on hold

 

BEIJING (Reuters) Dec 16 – Chinese liquid organic fertilizer enterprises – Xi’an TechTeam group chairman Tao Li said, by benefitting from the company's business development and brand marketing, the global financial crisis only has a little impact on the company, the industrial Business today will still be able to grow 40-50% next year. But the company merger and acquisition move and capital operation process had to slow down the processing.  


He told Reuters in the interview that, so far the company is still in a state of full production and operation, and actively expanding production to meet the demands of market development, the company is still in control of growth stage. And in the long run, due to appropriate policy to the enterprise development, the company has a good prospects for development. "However on the other hand, the financial crisis is also an opportunity for the development of enterprises." said by Tao Li, the spread of financial crisis gives a lot of impacts to the organic fertilizer enterprises, so this would offer the opportunity for merger and expand.


He said, the green liquid organic fertilizer in China has a huge potential market spaces, plus the national policy to encourage agriculture industrialized and scaled management and increased market potential, at least for now, company nearly has no competitors in the market. As a result, even the current condition of the economic situation is not good, the company has not met the situation of lack of demand.


Due to the limited production, even under the state of full production but still unable to meet the market demand, therefore the company has decided to expand the existing 10000 tons of production line to 14000 tons, and will build new production line which would undertake production of 40000 tons, the plan will carry out in Feb to March next year as trial period.


He says, because of concerns about excessive growth will lead to problem about management on logistics and cash flow problems, combined with the existing limited production capacity, it would limiting the growth of company. In general the company will continue to maintain 40% growth a yearin the next few years.