Hanfeng is a leading developer and producer of value added fertilizers in China and South East Asia. Headquartered in Toronto, Canada, Hanfeng owns production facilities in Jiangsu and Heilongjiang, China, with Jiangsu's primary focus on research and development. The Company also has a 34% ownership in a fertilizer production facility in Indonesia with two local joint venture partners. Hanfeng's production primarily targets the large agricultural market in and the urban greening market in China and SE Asia.
While China is the world's largest consumer and producer of conventional fertilizers, its value added fertilizer industry is still at an early stage of development. China's domestic fertilizer industry is fragmented with numerous small regional producers, many operating out-dated and inefficient equipment. There is very little domestic production of value added fertilizers and high quality NPK fertilizers. Imported value added fertilizers are too expensive to penetrate the China market to any significant extent. The government of China and the agricultural industry has increasingly stressed the importance of value added fertilizers as a key component for improving crop yields, farm incomes and raw material efficiency and reducing water pollution.
SE Asia is a key new market for the Company where local governments are faced with similar challenges as the People’s Republic of China ("PRC"). The Southeast Asia region is the largest producer of oil palm in the world. As a major source of bio-diesel fuel, policies have been implemented in Indonesia, Malaysia and other countries to encourage farmers to plant oil palm.