Red Sun to Expand Product Portfolio        

The price of domestic RMB shares of Red Sun Co., Ltd. (Red Sun, SZ: 000525) increased 10% on October 6th. The stock price increase defied the softer market was initiated by a regrouping rumor.
    Red Sun Group, the majority shareholder of Red Sun, is a state-owned enterprise, owned by Nanjing Gaochun State-Asset Administration Holdings Co., Ltd. According to market watchdogs, the 12 000 t/a pyridine project of Red Sun Group will likely be sold to Red Sun at a price of 100 million circulating shares of Red Sun. The pyridine production line can enhance the Red Sun's profit-making ability.
   Market analysts also said that Red Sun Group planned to incorporate all of its business into Red Sun. But the news has been vetoed by a senior executive of Nanjing Gaocun State-Asset Administration Holdings Co., Ltd.
    Red Sun is a leading agrochemical producer in China, located in Gaocun of Jiangsu province where is in the famous reaches of the Taihu Lake. Environmental protection requirements on plants in this area are very high and huge funds have to be put in environmental protection. To reduce the environmental protection cost, the company has already operated a pesticide plant in Ma'anshan, Anhui province since August 2008, with a capacity of 25 000 t/a pyridine and 40 000 t/a N-(phosphonomethyl) iminodiacetic acid (PMIDA) project.