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Mercuria Announces Strategic Investment from China Materials Storage and Transportation Development (CMSTD) to Expand Henry Bath Warehousing Business

5th January 2016

GENEVA, 05 January 2016 – In a move to bring the historic and renowned reputation of the Henry Bath warehouse facilities to an expanded global customer base, Mercuria Energy, one of the world’s largest independent integrated energy and commodities groups, announced China Materials Storage and Transportation Development Company (“CMSTD”) has invested in Henry Bath

As the largest Chinese state-owned warehouse logistics provider in the country, CMSTD becomes a key and material investor in the shareholding structure of Henry Bath. Mercuria acquired Henry Bath from J.P. Morgan Chase & Co. when Mercuria acquired the bank’s physical commodities business in 2014.

Mr. Han Tielin, Chairman of CMSTD, said: “We are very pleased to announce the completion of this investment in Henry Bath. With their reputation, Henry Bath is a preferred company to grow CMSTD’s commodities warehousing business. The strengths of CMSTD, Mercuria and Henry Bath have complementary advantages that will enable us to harness significant growth opportunities in the expanding warehouse industry in China and around the globe.”

As the bonded warehouse operator which issued the very first LME warrant, this is a major chapter in the 221-year history of Henry Bath. The company’s world-class governance, risk management, compliance, and security have been much sought after qualities globally. The senior management team of Henry Bath considered China an essential milestone in the company’s Asia expansion and development strategy.

“CMSTD is the natural partner for Mercuria and Henry Bath,” said Marco Dunand, Chief Executive Officer of Mercuria Energy Group. ”CMSTD has an extensive portfolio of logistics assets and land holdings in premium locations across China. Combined with Mercuria’s global expertise, this will fuel the natural growth of Henry Bath.”

China National Materials Storage and Transportation Corporation (abbreviated CMST) was established at the beginning of the 1960s. On January 21, 1997, CMSTD, a subsidiary of CMST, was listed on the Shanghai Stock Exchange. CMSTD possesses over 70 logistics distribution centers and business entities in more than 20 central cities and port cities all over China, with 9 million square meters of land areas, 3.5 million square meters of open depots, 2 million square meters of warehouses, more than 70 special railway connections and over 60 million tons of annual handing capacity. The company has relationships with over 20 major Chinese and global financial institutions and ranks as a leading company in the domestic warehouse and storage industry. CMSTD has the main transaction warehouses for copper, aluminum, lead, zinc, rubber, screw steel and wire materials designated by the Shanghai Futures Exchange.

“This investment by CMSTD enables Henry Bath to further expand its brand, its culture, its trusted warehouse reputation and controls to even more locations in China and Asia,” stated Graham Hawkins, Group General Manager (Co-Head), Henry Bath & Son Ltd. “Now more than ever, our customers are asking for a trusted partner with a proven history and track record in metal warehousing, compliant document control and warehousing standards to raise the bar, to assure the markets and to provide the highest quality service to every client every time. Henry Bath can now greatly expand its market offering and provide clients with real optionality in trusted metals storage and logistics, linking onshore Chinese and offshore international markets, and providing the market with a trustworthy physical metals and commodity storage platform.“

The Henry Bath Group, founded in 1794, is a world leading logistics provider specialising in the storage and shipping of metals and commodities around the globe. The Group, which recently opened facilities in the Shanghai Free Trade Zone, has warehousing operations in key port locations across the USA, Europe, South East Asia and the Middle East, providing customers with a comprehensive range of services in warehousing, shipping, transportation and customs clearance. The Henry Bath Group is licensed by the London Metal Exchange (“LME”), the London International Financial Futures and Options Exchange (“LIFFE”), the Intercontinental Exchange (“ICE”), and the CME Group (“CME COMEX”) to store and issue exchange-traded warrants for commodities including aluminum, copper, zinc, lead, nickel, tin, aluminum alloy, cocoa and coffee.

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