Sinochem Hong Kong Holdings Ltd., the largest fertilizer company in China, is in talks to buy up to 10 percent stakes in two smaller rivals to boost volume.

Sinochem's chief executive, Du Keping, said the two fertilizer producers were located in Jiangsu and Shandong provinces.

"It is not economically feasible for each fertilizer maker to build its own distribution network," Du said, without providing prices for the possible acquisitions.

Sinochem planned to increase its sales points to 2,000 by 2008, up 75 percent from 1,143 currently, at a cost of 40,000 to 60,000 yuan ($5,034-$755) per outlet.

Source:佚名