American Vanguard Corporation (NYSE:AVD) today announced that its International Subsidiary, AMVAC Netherlands BV, has joined with Chinese-based Huifeng Agrochemical Company, Ltd. Subsidiary Shanghai Focus Biological Technology Co., Ltd. to establish a technology R&D-focused joint venture based in Hong Kong. This enterprise, Huifeng AMVAC Innovation Co., Limited will focus on technology transfer between the co-owners, including the development of new, proprietary agrochemical formulations and precision application systems for crop protection.
Through a series of joint service agreements, Huifeng AMVAC Innovation Co., Limited will provide a platform for the co-owners to leverage each company’s technological capabilities. Additionally, each owner will benefit from the other party’s established market experience in their respective home territories. Such deep understanding of diverse market segments in Asia and the Americas provides the owners with an outstanding foundation for continued international success.
The new venture is structured with each party owning 50% and it is expected that this entity will grow through additive technology investments in upcoming years. AMVAC's Asia President, Lawrence Yu, will assume overall responsibility for the company as the Managing Director supported by Ms. Li Ping as CFO.