China Development Bank signed a contract Thursday with China National Chemical Corporation, aimingto promote the development of China's agricultural chemicals industry.

At the press conference held here, an official from China Development Bank said the agricultural chemicals industry is crucial for the sound development of China's farms. The bank is willing to contribute to this together with China National Chemical Corporation.

According to the contract, China Development Bank will help China National Chemical Corporation acquire major agricultural chemical companies and research institutions in a bid to form "a mighty group in the sector."

According to statistics released by China National Chemical Corporation, with 2,000 agricultural chemicals companies, China accounts for five percent in the international agricultural chemicals market. The first eight major manufactures from developed countries make up eighty percent of the market.

Ren Jianxin, general manager with China National Chemical Corporation said that it is necessary to enhance the capability ofChina's agricultural chemical companies to keep up with fierce international competition. Agricultural chemicals also have a great effect on increasing farmers' income.

China National Chemical Corporation was founded in 2004, mainlyengaging in the operation of major sectors in the chemical industry.

Source: Xinhua