Orkla has entered into a Letter of Intent with ChemChina to develop the industrial collaboration between the two parties.
The letter was signed by the companies' CEOs Ren Jianxin and Dag J. Opedal at a ceremony facilitated by Trond Giske, the Norwegian Minister of Trade and Industry.
Norway and China have an extensive and growing contact. Nearly 200 Norwegian companies are established in China, and China is Norway’s most important trading partner in Asia. Norway’s export to China increased by 40 per cent from 2008 to 2009. Orkla has a considerable prescence in China through its subsidiaries Sapa, Elkem and Borregaard, with total sales of more than NOK1.8bn. Sapa will inaugurate its new factory in Shanghai in September 2010. Furthermore, Jotun (Orkla owns 42,5 per cent) has significant operations in China.
Altogether seven Norwegian companies signed agreements with their Chinese counterparts during the ceremony on June 11. In addition to Minister Giske the ceremony was attended by He Guoqiang, one of the nine members of the Politburo Standing Committee of the Communist Party of China, Vice Minister of Commerce Gao Hucheng and Chinese and Norwegian trade representatives.
"China is an increasingly important market to Orkla. We are pleased to have signed this Letter of Intent, where we agree to explore further collaboration within defined areas", says CEO Dag J. Opedal.