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China National Chemical Corporation (ChemChina), one of the leading producers of chemical products in China, said on Monday it has acquired 100 percent of Qenos, Australia's biggest ethylene producer.

ChemChina said the deal means its total assets now exceed 80 billion yuan (US$10 billion) and its total sales revenues for this year is expected to hit 80 billion yuan.

Ren Jianxin, general manager of the Chinese chemical giant, said "the deal provides ChemChina with a platform to expand in Australia".

The deal will be of great importance for ChemChina to improve its production and international operations, said the general manager.

ChemChina will improve by making better use of the research team and facilities at Qenos and its expertise in corporate governance, production management, safety and environmental protection, said Ren.

The Chinese company attributes the successful deal to ChemChina's corporate culture, growth potential and the strong Chinese economy.

ChemChina said it will pursue a strategy of localizing its professional team at Qenos to improve its competitiveness and long-term development through increased production capacity.

Founded in 1999, Qenos was equally owned by ExxonMobile and Orica. It produces half a million tons of ethylene and and same amount of polymer each year and has become the cornerstone of Australia's rubber industry. Qenos accounts for 70 percent of Australia's polyethylene market. In January, ChemChina's subsidiary, China National Blue Star Group Corporation took over Adisseo Group, the largest animal nutrition supplement producer in the world. It is the first time a Chinese enterprise acquired an overseas firm in the field.

(Xinhua News Agency April 4, 2006)