Syngenta will become a holding company under ChemChina, domiciled in Shanghai and will produce seeds, fertilisers, additional agricultural and digital technologies
ChemChina, Sinochem and ADAMA announced that they are consolidating their agricultural businesses into a new company called the Syngenta Group.
Domiciled in Shanghai, Syngenta will be a holding company within ChemChina and it is expected to become a major player spanning crop protection, seeds, fertilisers, additional agricultural and digital technologies, along with advanced distribution network in China.
Syngenta and Sinochem’s agriculture-related activities and ADAMA have advanced their collaboration over the last year and have generated additional revenue through cross-sales and benefitted from procurement and operational savings.
The new company Syngenta is could capitalise on value creation
By forming a new company, the group is expected to further strengthen the alignment between the companies and to capitalise on the value creation.
ADAMA, which is based in Israel, will become a member of the newly-formed company by the contribution of the stake that ChemChina currently owns in ADAMA into the new company.
ChemChina and Sinochem chairman Frank Ning will become the chairman of the new group. After completing the transfer of ADAMA’s shares into Syngenta, Chen Lichtenstein could remain on ADAMA’s board and will be joined by Syngenta CEO Erik Fyrwald, who will replace Yang Xingqiang as chairman.
The current ADAMA co-chief commercial officer Ignacio Dominguez could be appointed as ADAMA CEO and president. As a leading crop protection industry expert, he is claimed to be uniquely qualified to lead ADAMA through its next phase of growth.
Lichtenstein said: “ADAMA has never been stronger. Our fantastic people have built together a wonderful company with clear strategy and direction, able to continuously grow and navigate confidently through the rough seas that our industry has seen in the last few years.
“I now move on to an interesting yet challenging role at Syngenta Group, and I look forward to bringing my ability and experience to bear. I am confident that Ignacio will continue to lead the Company to further growth and achievements, and wish him, Aviram, Shaul and Joe, as well as all of ADAMA, tremendous success in the future.”
Dominguez said: “I am excited to be leading with my colleagues this amazing company. Having been at the company for 20 years, and part of its Management and Executive Committee for more than a decade, I look forward to continuing its strong momentum and strategic direction.
“We are focused on listening to and serving our customers worldwide, while pursuing new opportunities for collaboration across the Group. Together with ADAMA’s people, with their passion and commitment, I am confident that we will drive our Company forward to ever greater heights.”