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Eric Ng

Industrial chemical maker Lumena Resources Corp is in advanced talks to buy a rival as it explores high-margin uses for its main product,  thenardite.
Lumena, the world's second-largest producer of thenardite, plans to upgrade the rival's products which are low-end and oversupplied, chief executive Zhang Daming said.  
'We are talking to several potential targets, one of which has half a million tonnes of annual output capacity and we are already close to completing due diligence,' he said. 'If everything goes smoothly, we strive to realise the deal by year-end.' 
Thenardite is a white crystalline solid mined mainly from salt lakes in Sichuan, Hubei, Tibet and Inner Mongolia. China is the world's largest producer, consumer and exporter and has the biggest reserves. 
Known chemically as sodium sulphate, a salt of sulphuric acid, the mineral is used in a wide array of industries, such as powdered detergent manufacturing, textile dyeing and glass making. 
It also has medical applications as a laxative and anti-inflammatory agent. In Chinese medicine, it is used to relieve constipation, conjunctivitis, and mouth and throat ulcers. 
On Tuesday, Lumena posted a 40.1 per cent  rise in net profit to 356.9 million yuan (HK$407.44 million) for the first half. Sales jumped 72.6 per cent to 1.02 billion yuan, thanks to a 30.2 per cent rise in sales to 994,883 tonnes and a 32.5 per cent increase in average selling price.
The firm has two million tonnes of annual output capacity that is almost fully utilised. It had planned to build a 646 million yuan, one million tonnes a year plant in Muma, Sichuan, but the plan has been put off as it could not obtain land-use rights. 
Zhang said 'the local government has its own issues to resolve'. 
A person familiar with the situation but who declined to be named said the local bureau responsible for land use was being restructured and cannot approve new projects. 
Originally due for completion in this year's third quarter, the project is now in limbo, and land-use approval is not expected to be granted for at least another year, the person said.
 Lumena is in the early stages of launching products used in surgery, products that quicken cement drying and products that cut power plant maintenance time.



Chemical firm Lumena in talks to acquire rival