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Chinese fertilizer company to set up Australian operation

(Xinhua) Updated: 2016-04-05 13:26

CANBERRA - Chinese fertilizer producer Hubei Xinyangfeng has secured its first allotment of farmland outside of China, after it purchased a farm in southern New South Wales, Australia.

The Chinese company, listed on the Shenzhen Stock Exchange, has pledged to spend $50 million setting up a number of locations in Australia, and began its operation by purchasing the farm for $4 million.

On Tuesday, a spokesperson from the producer said it was hoping to further expand its international operations through opening up a number of Australian sites.

"Xinyangfeng, one of the top fertilizer makers in China, has pledged to invest $50 million in Australia, including setting up a new 50,000 ton a year water-soluble fertilizer project and farming business," the spokesperson told News Corp.

Jason Hellyer from Hellyer Consulting, the firm which assisted Xinyangfeng in acquiring the farmland in southern New South Wales, said the purchase would ensure the Chinese company has a "solid" base for expansion in Australia.

"(This) purchase is their first in Australia and through this exercise we think they've now got the template and people in place to help them establish a solid Australian base," he told News Corp.

Hubei Xinyangfeng is one of China's largest producers of fertilizers.

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