Jiuquan, China
December 12, 2006
DuPont today announced that
its subsidiary Pioneer Hi-Bred
International, Inc., has formed a joint venture with one of
China’s largest seed production companies,
Dunhuang
Seed Co. Ltd., to provide top-performing corn hybrids to
Chinese farmers in the spring market.
“I’m excited about the opportunities for the Pioneer business in
China and the increased productivity that we can bring to
Chinese farmers,” said Paul Schickler, vice president, Pioneer
International Operations. “This partnership brings together two
strong seed companies and combines their strengths to benefit
the agricultural industry."
Dunhuang Seed contributes extensive local field seed production
experience. Pioneer’s strengths are in developing products that
meet farmers’ needs, providing agronomic advice to its
customers, and post-harvest seed conditioning expertise. With
this unique combination of strengths, the JV is poised to offer
Chinese farmers the highest quality seed and some strong new
hybrid corn products for the spring corn market.
Wang Da-he, chairman of Gansu Dunhuang Seed Co. Ltd., said, “The
comprehensive cooperation between the two parent companies is a
complementary one, which will upgrade China’s corn seed sector
and its commercialization process, and meanwhile lay a solid
foundation for further development for both Dunhuang Seed and
Pioneer."
With 62.5 million acres, China is second only to the United
States in the amount of land producing corn. Additionally, a
rapidly growing population with rising incomes has resulted in
an increased demand for agricultural products. More meat is
consumed in China than in any other country, and 50 percent of
the world’s hogs are in China, leading to a high grain demand
for livestock feed.
Pioneer established a business representative office in Beijing
in 1997. A year later, it began breeding and testing corn
hybrids for commercialization in China for the summer and spring
corn areas. The first Pioneer corn hybrids were approved for
commercialization in 2002. Pioneer established a summer corn
joint venture in China – Shandong Denghai Pioneer Seeds Co.,
Ltd. – in late 2002. The first commercial sales were in 2004 and
the business has achieved solid growth since then.
“This venture is part of a broader DuPont commitment to growing
its presence in China by putting our science to work,” said
Douglas Muzyka, president of DuPont Greater China and DuPont
China Holding Co. Ltd. “DuPont earlier announced a plan to
double its China investment by 2010. A series of projects,
including this second seed joint venture, is under construction
or negotiation to help achieve this goal."
The new joint venture, Dunhuang Seed Pioneer Hi-Bred Company
Ltd., will develop and distribute high-yielding corn hybrids for
the spring corn market in China. The joint venture plans to
produce seed in 2007 for sale in 2008. This is a key long-term
investment in a significant agricultural market. Dunhuang Seed
Pioneer Hi-Bred Company Ltd., in accordance with Chinese law, is
49 percent owned by Pioneer, and 51 percent owned by Dunhuang
Seed.
Dunhuang Seed has 28 years of seed business experience and is
one of the largest seed production companies in China. With 25
wholly owned subsidiaries, six joint ventures, and more than
1,500 employees, the products they produce are marketed
throughout China.
Pioneer Hi-Bred International, Inc., a subsidiary of DuPont, is
the world’s leading source of customized solutions for farmers,
livestock producers and grain and oilseed processors. With
headquarters in Des Moines, Iowa, Pioneer provides access to
advanced plant genetics, crop protection solutions and quality
crop systems to customers in nearly 70 countries.
DuPont is a science-based products and services company. Founded
in 1802, DuPont puts science to work by creating sustainable
solutions essential to a better, safer, healthier life for
people everywhere. Operating in more than 70 countries and
regions, DuPont offers a wide range of innovative products and
services for markets including agriculture and food; building
and construction; communications; and transportation. |