Israel’s AutoAgronom LTD, which manufactures irrigation and fertilization systems, has been acquired by the Chinese Shenyang Yuanda Enterprise Group (Yuanda) for $20 million.
AutoAgronom boasts that it “listens” to the growth of the roots and takes fertigation decisions. The company also states that its technology saves up to 50% of water, up to 70% of fertilizer and increases the yield by up to 15%.
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Founded in 1988, Auto Agronom Israel Ltd is a major player in the world of smart irrigation systems. Its products are currently used in 13 countries and the company asserts that it is an expert in improving efficiencies of water and fertilizer usage for environmental protection.
The intelligent drip irrigation system that it introduced makes it possible for over 95 percent of the liquid to be absorbed and various targets to be monitored, they assert. With the help of the system, the water consumption for each acre plunges to 150 tons from previously 500 tons, 30 to 40 percent less than that of in Israel.
Yuanda plans to develop relative agricultural manufacturing facilities based on Auto Agronom’s intelligent drip irrigation system.
The leaders of the firm believe that their new Chinese owners will help to better market their products worldwide. “Our cooperation is like a marriage. We offer technology and Yuanda focuses on marketing, ” said Nissim Daniely, general manager of AA.
“The movement to new technology is huge. Every year, the area of drip irrigation system farming in China increases about 20 percent, which is more than all in Israel and Europe together. It is a huge market in China.” Nissim Daniely added.
Yuanda also sees benefits from its new acquisition. “The system can help us to farm on the sand, saline-alkali soil or even on the Gobi, which may restore underground water and help manage heavy metal and garbage pollution, ” said Kang Baohua, chairman of Shenyang Yuanda EnterpriseGroup.
Shenyang Yuanda Enterprise Group is a large-scale international firm mainly composed of Yuanda China Holdings Limited, Shenyang Brilliant Elevator CO Ltd, Shenyang Yuanda Mechanical & Electrical Equipment Co., Ltd, engaging in construction curtain wall, elevator manufacture, motor manufacture, wind power generation, prefabricated house, system windows & doors, environmental engineering and prefabricated houses. Its head office is located at the base of the equipment manufacture city Shenyang.
The Group has 4 large-scale manufacturing plants, located at Shenyang, Shanghai, Chengdu and Foshan.