CNEI leads $23m investment in China Dadi Chemical
China New Enterprise Investment (CNEI) has led a $23 million round of funding for China Dadi Chemical, a leading industrial salt and salt chemicals producer. Korea Development Bank was a co-investor in the deal.
Dadi, which was set up more than 60 years ago, makes industrial salt and chlor-alkali chemicals as well as other salt chemicals. Its products are used in the metals, paper making, chemical processing, construction, plastics and agriculture industries.
The company has rich brine deposits, self-produced industrial salt, captive power plants and proximity to downstream customers, allowing it cost competitiveness. CNEI's investment will be used for capacity expansion and downstream product development.
"We are highly impressed with Dadi's capable management team and glad to become partners with them," said Johannes Schoeter, founding partner at CNEI. "We look forward to supporting Dadi's ongoing expansion plans with our management and capital market expertise, as well as our international resources."
CNEI is currently investing out of its $255 million second fund. Operating through a transparent onshore structure, the firm targets well established Chinese growth companies in a wide range of industries, with a particular focus on opportunities tied to domestic consumption.
In June, CNEI completed a partial exit from Jilin Liyuan Aluminum, a leading aluminum extrusion product manufacturers, securing a 9.4x gross return. The firm sold 42% of its investment holding in Liyuan through block trades and the public market. Gross proceeds from the sales amounted to $29 million.
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