By staff reporter Zhang Boling

In order to expand into the international rubber market, Sinochem International Co. Ltd. (SSE: 600500), one of China’s leading state-owned oil trading conglomerates, has acquired 51 percent of Singapore-based rubber plantation company GMG Global Ltd.

Sinochem announced late September 4 in a statement that it has bought SD$ 268 million in shares of GMG, through its wholly-owned subsidiary Sinochem International (Singapore).

The deal gives Sinochem a controlling stake in GMG. Meanwhile, Sinochem pledged not to increase its stake in GMG for at least six months. GMG’s shares will stay listed in Singapore’s stock exchanges.

Singapore GMG plants, taps and processes natural rubber, and also trades rubber products in a business network spanning Africa, Europe, Asia and North America.

According to Sinochem, this deal will help the company increase its presence in the global rubber market by integrating rubber plantation, processing and trade. Moreover, GMG will help Sinochem get access to African rubber resources and the European market.

As one of China’s major chemical product suppliers, Sinochem posted US$ 2 billion in sales revenue in 2007.

1 Singapore $ = 70 U.S. cents