Monday 2011-08-22  17:24 Publisher: CapitalVue
August 22 – Nantong Jiangshan Agrochemical and Chemicals (RCode:600389) reported in a company filing that its electricity supply was cut when a tornado blew down pylons with capacity of 110 kilovolts, reports the China Securities Journal. The disaster shut down all production facilities, the firm wrote, and resulting losses could exceed 10 million yuan. The firm wrote that it expects the pylons to be recovered by today.

Jiangshan Agrochemical will disclose details on the losses as well as insurance compensation in a “timely manner,” it said in the filing.

The China Securities Journal cited one investor who worries that the indirect costs of the lull in production will not be paid by Jiangshan Agrochemical's insurance company.

Earlier this year, Jiangshan Agrochemical was under an anti-dumping investigation by the Brazil Trade Protection Bureau in May. Brazilian authorities ultimately rescinded the investigation.

Earlier this month, a compressor at one of the Nantong-based firm’s factory malfunctioned, resulting in a chlorine leak that sickened 26 people.

Jiangshan Agrochemical incurred a loss of 23.5 million yuan in the first half of 2011, with each share losing 0.0277 yuan.

The firm mainly processes and sells farm chemicals. It is China’s largest maker of glyphosate, the price of which has remained low due to a market surplus.

Jiangshan Agrochemical obtained 140 million yuan worth of subsidies from local governments in 2010.

Source:CapitalVue