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Nantong Jiangshan to set up wholly owned US subsidiary

In an announcement released on 2 April, 2019, Nantong Jiangshan Agrochemical & Chemical Co., Ltd. (Nantong Jiangshan) said it planned to establish a wholly owned subsidiary in the United States. The company emphasized that it needs a government approval to do so and it’s uncertain whether this plan would succeed or not. 


Information on the new company (temporary)

²  Company name: Jiangshan America LLC

²  Amount of investment: USD500,000

²  Registered address: State of Delaware, the US

²  Source of funds: self-owned funds

²  Share proportion: 100% shareholding

²  Organization form: limited liability company (sole proprietorship of legal person)

²  Business scope: pesticide registration, sales, trade, brand management, technical consultation etc.


Predictable influence of the new subsidiary


Setting up a wholly owned subsidiary in the United States could facilitate Nantong Jiangshan’s market expansion in the country, promoting its brand influence and lifting its sales there. This move will serve as a part of Nantong Jiangshan’s long-term development strategy and will be a driver for the company’s sustainable development in the long term.


Nantong Jiangshan planned to use self-owned funds to set up the subsidiary, which would not exert any significant influence on its financial performance and operation results.


It’s possible that in future operation the new subsidiary would face negative influence from factors including the industrial policies applied in its location country as well as cross-border management, accompanied by risks of operation and management. Yet, the company is confident that it would be able to realize growth in sales in the country through strengthening its research in the local market situation, industrial policies and market rules based on its existing client resources there, establishing necessary rules and regulations and  strictly controlling any possible risks.




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