Move by parent seen boosting fertiliser maker's market share Shares of China BlueChemical, the mainland's second-largest maker of nitrogenous fertiliser, surged 10.7 per cent yesterday on hopes of a potential asset injection from its parent company. The stock jumped 32 HK cents to close at HK$3.31, extending its gains to 74 per cent since listing in Hong Kong last month. The company raised HK$3 billion by selling 1.6 billion shares at HK$1.90 each. 'We will consider acquiring China National Chemical Construction's assets if the business fits our development strategy and can enhance our competitiveness,' a China Blue spokesman said. The spokesman added that China National Chemical Construction produces complex fertiliser, an area in which China Blue hopes to become more involved. 'Any acquisition will be subject to the listing rules,' he said. China Blue's parent, China National Offshore Oil Corp, said it took over China National Chemical Construction from the central government in a move to further expand the company's share in the fertiliser market. No acquisition price was disclosed. Founded in 1982, China National Chemical Construction engages in the production of fertilisers and chemicals. The company had assets of more than 2.7 billion yuan at the end of last year. Its operating revenue reached 4.2 billion yuan and net profit before interest was 1.3 billion yuan. Market watchers expected that a purchase of China National Chemical Construction may enable China Blue to strengthen its position in the mainland fertiliser market. Kenny Tang Sing-hing, an associate director of Tung Tai Securities, said it makes sense for China National Offshore Oil to inject other fertiliser assets into China Blue in the long run to avoid competition among its units. Investors have been attracted by China Blue's market position in the mainland, the world's largest consumer of fertiliser with demand expected to rise robustly in coming years. In addition to the company's annual output of 1.84 million tonnes of urea, China Blue has branched out into production of synthetic chemicals such as methanol and is building a polyoxymethylene plant.