China Agrochemicals 2013 December - AgroChemEx

27 Pages·2013·4.31 MB·English

DEC 2013
Published by CCPIA
CHINA AGROCHEMICALS
www.ccpia.org.cn/en
2013 CHINA PESTICIDES PRODUCTS REPORTS
Publisher: CCPIA
Other product reports: Imidacloprid product report
4 At present, there are altogether more than 60 registered
imidacloprid manufactures in China with an annual capacity
Paraquat
of 25,000 tonnes (based on 100% ai.). China’s imidacloprid
Acetochlor output is about 12, 000 tonnes/year, accounting for two thirds
Oct 2014
Carbendazim of the world’s total ouput. The domestic demand for imidacloprid is 3,000-4,000
tonnes/year and the remaining 8,000 tonnes are exported. There are some large
Mancozeb
SHANGHAI WORLD EXPO EXHIBITION & CONVENTION CENTER imidacloprid producers in China, including Jiangsu Ke Sheng Group Co., Ltd., Nanjing
Abamectin Red Sun Co., Ltd., Qingdao Hailier Pharmaceutical Co., Ltd., Shandong Sino-Agri
Chlorpyrifos United Biotechnology Co., Ltd. and Jiangsu Changqing Agrochemical Co., Ltd..
Chlorothalonil
Acephate
Glyphosate product report
Pymetrozine
By June 2012, there have been 124 registered enterprises
Glufosinate
of glyphosate manufactures in China, including 61 licensed
4 Azoxystrobin enterprises in agrochemicals production and only 56 enterprises
that met all of the required procedures in this regard. However,
Triazines
just over 20 enterprises are running business due to strict environmental protection
Thiamethoxam
supervision. And the capacity of glyphosate technical in China remains 600,000
Nicosulfuron tonnes.
Transfl uthrin
Mesotrione,etc.
2,4-D product report
Currently, there are only 9 enterprises with a valid registration
Besides,CCPIA issued the
certificate of 2,4-D technical, including 5 manufacturing license
China Crop Protection holders, with a total deliverability of over 80,000 tonnes or so against
a total domestic demand of approximately 8,000 tonnes.
Industry Yearbook 2013.
Founded in April, 1982, China Crop Protection Industry Association (CCPIA) was one
of the earliest trade associations in China's chemical field. It is a non-profit national
institution covering different regions, organizations/departments and industries, and
possesses independent legal person status.
In the course of the more than two decades period since its establishment, CCPIA has undergone
rapid development, witnessing its members increased from the originally 45 to 564 at present,
covering producers/ enterprises , R & D and design institutions, universities and colleges,
provincial/municipal pesticide associations related with technicals and formulations, intermediates,
auxiliaries, packing materials, packing equipments and applying machines, etc. CCPIA members
companies' production value accounts for 90% of the national total pesticide production.
Tel:[phone]
Email:[email protected]
CHINA AGROCHEMICALS
International Conference on
Crop Protection Science & Technology Call
CONTENTS
for Papers
INDUSTRIAL NEWS
DEC 2013
2014 International Conference on Crop Protection Science & Technology, in parallel with Agrochemex 2014,
2 Anti-Dumping Case against Pyridine Settled, RedSun’s Integrated Advantages
organized by China Crop Protection Industry Association, will be held in Shanghai in October, 2014 . Stand Out
The events will cover marketing, new legislation and new data requirements, as well as innovation and technology Director of Editorial Dept.: Sun Shubao 2 Pesticide Output Fell for Three Months in a row and Output of October
improving. Since it began seven years ago, the events has attracted thousands people, especially for technical and Dropped by 6.1%
Editor in Chief: Shirley Xia 3 The Profi t of the Pesticide Industry in the First Three Quarters of 2013 Increased by
regulatory staffs and marketing specialists.
34.5%
Executive Editors: Lv Cong, Luo Yan
Original papers, surveys and presentations on all aspects of crop protection are invited. Possible topics for 4 Pesticide Imports and Exports in October 2013
submission to the various sessions include, but are not limited to: Sponsor: China Crop Protection 5 Total Demand for Pesticides in 2014 will Meet Slight Decline
Industry Association (CCPIA) 6 Ministry of Agriculture Starts the Sustainable Development Plan: Bio-pesticides
Embrace Opportunities for Development
ACE SPECIAL
Address: Room 1315, Anhuili 4th 8 Confusions on the way: Open Your Mind and Break through—2013 China
Markets: status of local agrochemical industry or agriculture, strategies of Area, Chaoyang District,Beijing,China Agrochemical Industry Summit
international marketing, cooperation with Chinese companies
Postal Code: 100723 Fax: [phone] TOP 100 Pesticide Enterprises in China Released in Oct
15 2012 Top 30 Pesticide Formulation Enterprises of China Released in Oct
1084885255 Websites:www.ccpia.
Policies: registration overseas, view of local pesticides regulation 16 Going into the U.S. Market: Resolving Mysteries of Data Compensation and
org.cn/en www.agrochemex.org/
Dealing with Hidden Hurdles in Registration
en(exhibition) 17 The 8th International Forum on Procurement and Service of Pesticides
R&D: synthesis of technicals, intermediates and pro-pesticides
GENERAL ENQUIRIES E-mail: Sucessfully Held in Shanghai
[email protected] Tel: 86- 22 China ICAMA Representative Analyzed Import/Export Management of
Environmental science: new pollution treatment technology, green process,
Pesticide in the 8th China International Forum on Procurement and Service
energy reduction and comprehensive use of resources 1084885145, 86-10-84885035
of Pesticide
All rights reserved.
26 The 8th Crop Protection International Forum Was Held In Shanghai
Process and application: formulation process, adjuvant and formula,
32 Improve the Service and Help the Enterprises Grow—Interview at the
application and effi ciency
AgroChemEx 2013
Marketing strategy: market exploration, import/export Companies
36 Hebang Crop to Acquire 51% of Shares of Hebang Agricultural Technology,
Bio-pesticides
Starting Glyphosate Business
36 Huapont-Nutrichem to Acquire Two Fine Chemical Enterprises for 1.3 Billion,
Strengthen Agrochemical Industry
Others: Agrochemical Residue & Metabolism Chemistry 37 Rainbow Expands Market in Central America and Caribbean, Speeding up
International Business
38 RedSun Released Q3 Report, Business Integration Decision Passed
39 Huaxing Chemical Q3 Report: Revenue Quadrupled
40 LiEr Chemical Q3 revenue rose by 1/4
41 Income of Lianhetech rose by more than 1/ 3 in Q3 2013
All papers should make clear titles, abstract, author(s), the affi liation (institution, agency or 41 SANONDA has a predicted increase in operation from 270-320% in the First
Three Quarters
company) and location (city and state or country). Deadline is July 30th, 2014. Excellent
papers will be elected and be presented in the forum, the authors will be awarded.
Products
All the papers should be sent to
[email protected] 42 Zhejiang Huajing Biotechnology Receives the First Registration Approval for
Berberine Product in China
before July 30th 2014.
42 Anhui Fengle Agrochemical Receives the First Registration Approval for
Propyzamide WDG in China
43 Rudong Zhongyi Chemical Receives the Registration Approval for Cyazofamid
TC as the First Domestic Enterprise in China
http://www.agrochemex.org 43 The First Domestic Enterprise in China Receives the Registration Approval for
45 Iodosulfuron-methyl-sodium TC
45 Shijiazhuang Xingbai Bioengineering Receives the Registration Approval for
Dinotefuran TC as the First Domestic Enterprise in China
46 China ICAMA Newly Granted 1931 Pesticide Registrations in H1 2013
IINNDDUUSSTTRRIIAALL NNEEWWSS IINNDDUUSSTTRRIIAALL NNEEWWSS
No. of October Total of the First Ten Months
Anti-Dumping Case against Pyridine
Enterprises October October Year- Total of the Total of the Year-
Settled, RedSun’s Integrated Advantages 2013 2012 on-Year First Ten First Ten on-Year
(10,000 (10,000 Basis Months of Months of Basis(%)
Stand Out (339) tonnes) tonnes) (%) 2013 2012
(10,000 (10,000
tonnes) tonnes)
Chemical
26.2 27.9 -6.1 262.0 262.9 -0.3
ecently, the Ministry of Commerce of China released Pesticides
R
Announcement No.73, 2013. According to the Announcement, Insecticides 6.0 6.4 -7.5 59.4 63.9 -7.0
dumping exists in pyridine imports originated from India and Fungicides 1.3 1.3 0.7 13.6 12.4 9.3
Japan during the period of investigation. Such dumping has Herbicides 14.1 14.7 -3.8 143.3 133.3 7.6
caused material injury to China’s industry of pyridine and there exists
In terms of provinces, the top three provinces of the largest pesticide
a causal link between the dumping and the material injury. Anti-
output are listed as below: Shandong province, Jiangsu province, and
dumping duty will be levied on pyridine imports (ranging from 24.6%
Henan province. The pesticide output of Henan province in October
to 57.4%). Importers that mentioned in the Announcement should
was larger than that of Zhejiang province, and ranked the third in the
pay required anti-dumping rates to China Customs when importing the
provincial pesticide output ranking list. During the first ten months
said products in light of dumping rates listed in the Announcement.
of 2013, the pesticide output of Shandong province reached 715,900
This rule will be implemented for five years.
tonnes, an increase of 7.6% on a year-on-year basis; that of Jiangsu
More info. Visit: province reached 613,800 tonnes, a drop of 0.9% on a year-on-year
As the chief beneficiary in this pyridine anti-dumping case, Nanjing
basis, and that of Zhejiang province reached 239,300 tonnes, a drop of
www.ccpia.org.cn/en RedSun’s integrated advantages stand out. Equipped with production
1.8% on a year-on-year basis.
units for pyridine, RedSun assures that the raw material for its
paraquat will be regularly supplied, which will not only sharpen its
About agrochemical show: competitive edge in the international paraquat market, but also
guarantee that the quality of its paraquat will be stabilized and
www.agrochemex.net the market share will be maintained. This has fully embodied the The Profit of the Pesticide Industry
company’s integrated advantages. To develop downstream products
in the First Three Quarters of 2013
on the basis of pyridine, RedSun’s future looks promising.
Increased by 34.5%
According to statistics of the National Bureau of Statistics of
Pesticide Output Fell for Three Months in a China (828 enterprises), the asset of the pesticide industry
of the first three quarters of 2013 totaled RMB180 billion, an
row and Output of October Dropped by 6.1% increase of 14.3% on a year-on-year basis; primary business income
reached RMB201.6 billion, an increase of 17.9% on a year-on-
year basis; total profit reached RMB 14.1 billion, a substantial
According to the statistics of the National Bureau of Statistics of increase of 34.5% on a year-on-year basis.
China, in October 2013, the total output of pesticide TC by 339
Specific economic indicators of the pesticide industry are listed as
pesticide enterprises above designated size reached 262,000
below:
tonnes in term of active ingredients, a drop of 6.1% on a year-on-
year basis; of all the TC products, insecticides met the largest decline,
a drop of 7.5% on a year-on-year basis with the output in October Total Asset Primary Business Total Profit
being 60,000 tonnes; the output of herbicides in October reached (100 million) Income(RMB, billion) (100 million)
Industry Number of
141,000 tonnes, a drop of 3.8% on a year-on-year basis; only the
Category Enterprises Total of the Total of the Year- Total of the Year-
output of fungicides increased, a slight increase of 0.7% on a year- Year-on-Year
First Nine First Nine on-Year First Nine on-Year
Basis(%)
on-year basis, reaching 13,000 tonnes in October. Months Months Basis(%) Months Basis(%)
The domestic pesticide output of the first ten months of 2013 reached Pesticide 828 1800.5 14.3 2016.7 17.9 140.8 34.5
2,620,000 tonnes, a slight decrease of 0.3% on a year-on-year basis.
Chemical
The output of fungicides and herbicides increased respectively by 699 1657 14.5 1817.6 18.2 127.2 36.5
TC
9.3% and 7.6%, reaching 136,000 tonnes and 1,333,000 tonnes Biochemical
respectively. The output of herbicides accounted for 54.5% of the Pesticide
total, and fungicides for 5.2%. However, the insecticide output and 129 143.5 12.3 199.1 15.3 13.6 19.2
dropped by 7.0% on a year-on-year basis, reaching 594,000 tonnes, Microbial
accounting for 22.6% of the total. Pesticide
-2-
INDUSTRIAL NEWS INDUSTRIAL NEWS
herbicides reached 19,200 tonnes, an increase of 10.4% on a year-
Pesticide Imports and Exports in October
on-year basis, while the amount of imports totaled 103 million dollars,
2013 an increase of 36.5% on a year-on-year basis.
During the first ten months of 2013, China exported a total of 933,400
A
ccording to statistics from the General Administration of
tonnes of pesticides, an increase of 24.6% on a year-on-year basis,
Customs of the PRC, in October 2013, the total amount of the
while the exports amounted to 3.149 billion dollars, an increase of
pesticide imports and exports reached 313 million dollars, an
33.4% on a year-on-year basis. Of the exports, the export volume
increase of 37.8% on a year-on-year basis. The total amount of
and amount of herbicides maintained the substantial growth, with the
the pesticide imports and exports during the first ten months of 2013
export volume reaching 646,800 tonnes and export amount totaling
reached 3,733 million dollars, an increase of 31.4% on a year-on-year
1.996 billion dollars, an increase of 29.9% and 46.5% respectively;
basis.
the export volume of insecticides reached 191,300 tonnes, and the
amount reached 764 million dollars; the export volume of fungicides
In October, China imported 4,000 tonnes of pesticides, a sharp rise of
showed a slight growth, while the export amount increased by 12.2%.
46.7% on a year-on-year basis, and the amount of imports grew by
91.1%, reaching 41 million dollars. Among the imports, the import of
fungicides still accounted for the largest share, totaling 1,600 tonnes,
an increase of 10.7% on a year-on-year basis; the import of herbicides
reached 700 tonnes, a substantial increase of 313.7% on a year-on-
year basis with the import amount totaling 130,000 dollars; the import
of insecticides reached 400 tonnes and the import amount totaled 5 Total Demand for Pesticides in 2014 will
million dollars, an increase of 81.7% and 56.8% respectively.
Meet Slight Decline
In October, China exported 72,800 tonnes of pesticides, an increase
of 17.9% on a year-on-year basis, and the exports amounted to 272 A ccording to statistical analysis from the Plant
million dollars, an increase of 32.2% on a year-on-year basis. Of the Protection Stations of the 31 provinces (including
exports, the export volume of herbicides ranked the first, reaching autonomous regions and municipalities) across the
48,200 tonnes, an increase of 18.9% on a year-on-year basis, and country, it is expected that China’s total demand for
the export amount maintained the substantial growth, an increase of pesticides in 2014 (quantity of commodity) will meet
43.2%, reaching 169 million dollars; the export volume of insecticides slight decline, a drop of 1.38% compared with that of last year.
reached 16,200 tonnes, an increase of 20.2 % on a year-on-year basis; The total demand will reach 1,009,900 tonnes, or 329,700 tonnes
the export of fungicides reached 5,800 tonnes, an increase of 12.1% in term of active ingredients. The demand for insecticides will
on a year-on-year basis. drop, while demand for fungicides will maintain the growth,
demand for herbicides and plant growth regulators will meet
Statistics of the Imports and Exports of the National Pesticide Industry remarkable increase, and demand for seed coating formulations and
in October, 2013 plant protection chemicals as well as sprayer facilities will meet
(10,000 tonnes, 10,000 dollars) substantial increase.
Category Import Export
Total of the First Total of the First
October October It is known that the demand for insecticides, acaricides and
Ten Months Ten Months
rodenticides next year will decrease, and the demand for fungicides
Volume Amount Volume Amount Volume Amount Volume Amount
remains flat, while the demand for herbicides and plant
Pesticides 0.40 4148 6.34 58460 7.28 27185 93.34 314887
growth regulators will increase. It'ssaid that demand for pesticides
Insecticides 0.04 510 0.89 13690 1.62 6679 19.13 76385
next year was expected to decrease, reaching 120,300 tonnes, a
Fungicides 0.16 1625 2.25 24937 0.58 3109 6.02 31478
decline of 1.21% than that of last year. Use of conventional
Herbicides 0.07 1266 1.91 13019 4.82 16879 64.68 99641
organophosphorus pesticides will be significantly reduced, while use
of pesticides of high efficiency, low toxicity and persistent effect
During the first ten months of 2013, China imported a total of 63,400
will rise. It is projected that the demand for conventional
tonnes of pesticides, an increase of 16.9% on a year-on-year basis,
organophosphorus pesticides will reach 82,700 tonnes, a decline
while the imports amounted to 585 million dollars, an increase of
of 3.95% than that of last year. Demand for seed coating agents
21.4% on a year-on-year basis. The import volume and amount of
for corn, peanuts, rice and other crops will increase substantially.
insecticides, fungicides and herbicides all showed double-digit positive
Demand for rodenticides will meet slight decline, reaching 85.92
growth. The volume of pesticide imports reached 8,900 tonnes, an
tonnes, a drop of 24.21% compared with that of last year. Demand
increase of 26.6% on a year-on-year basis, while the amount of
for acaricides will also decline, dropping to 10,500 tonnes, a decline of
imports totaled 137 million dollars, an increase of 22.0% on a year-
3.38% than that of last year.
on-year basis. The import volume of fungicides reached 22,500
tonnes, an increase of 10.2%, while the amount of imports reached
249 million dollars, an increase of 10.6%. The import volume of The decline of demand for conventional organophosphate insecticides
-4- -5-
INDUSTRIAL NEWS INDUSTRIAL NEWS
will bring an increasing demand for carbamate insecticides, which
is expected to reach 6,400 tonnes, a significant increase of 10.72% As revealed by MOA, the National Sustainable Agriculture Development
compared with that of the previous year. Of all the carbamate Plan highlights that the ideas and objectives of agricultural
insecticides, the increase of demand for isoprocarb, carbofuran, development should be extended from “securing the supply and
carbosulfan, methomyl and pirimicarb will be the most notable. The increasing the output” to “three win-win targets” including production
demand for pyrethrums is expected to reach 4,200 tonnes, an increase increase, life quality and ecology protection. Outstanding problems
of 16.05% compared with that of last year. Of all the pyrethrum met in effectively using agricultural resources and in protecting
products, cypermethrin, fenvalerate, fenpropathrin, etc. will be used the ecological environment should be solved out in an earnest
largely, and the use of fenpropathrin will meet a sharp increase. way, and constant efforts should be made to explore a sustainable
agricultural development path of Chinese characteristics. According
The demand for fungicides will basically remain unchanged compared to industry analysts, the policy intention for starting sustainable
with that of last year, with an expected demand of 84,000 tonnes. Of all agricultural development planning is clearly and primarily targeted
the fungicides, the demand for copper sulfate, carbendazim, metiram, at food safety problems caused by excessive use of fertilizers and
thiophanate-methyl, tricyclazole, chlorothalonil, Jinggangmycin, pesticides. Furthermore, MOA announced in early November that from
triadimefon and ferbam will increase by the most. The demand for both 2014 MOA would begin to vigorously promote the demonstration of
herbicides and plant growth regulators will increase significantly. The operating highly toxic pesticides in some designated places and the
demand for herbicides is expected to reach 109,000 tonnes, of which, demonstration of subsidizing application of pesticides of low toxicity
the demand for glyphosate, acetochlor, atrazine, paraquat, butachlor, and low residue in order to guide the farmers to reduce the use of
2,4-D butyl ester and bentazone will increase significantly. The demand highly toxic pesticides. The ultimate goal is to establish a standardized
for new varieties cyhalofop-butyl, penoxsulam and metamifop will also designated operation system for highly toxic pesticides and formulate
rise remarkably. The demand for plant growth regulators is projected subsidy policies for applying pesticides of low toxicity and residue with
to reach 4456.86 tonnes, an increase of 20.27% on a year-on-year three to five years’ efforts.
basis. Overall, there will be an increasing number of varieties, of which
ethephon, paclobutrazol and DPC, etc. will meet a relatively large It is worth noting that, as a new variety in the pesticide industry of the
demand. 21st century, bio-pesticides have been gaining increasing attention.
The biggest advantage of bio-pesticides is that the pollution of
In recent years, along with the labor force shift, land transfer, chemical pesticides on the ecological environment will be eliminated
the increasing number of farming units of a large scale as well as and pesticide residue in agricultural and sideline products can be
the vigorous development of specialized organizations for disease reduced. In accordance with the “Twelfth Five-year Plan” for the
prevention and control, it is expected that the total demand for plant pesticide industry, by 2015 the output of efficient, safe, economical
protection machinery in 2014 will increase significantly. The future for and environmental friendly pesticide varieties should account for more
large self-propelled sprayers, unmanned aerial vehicles controlled by than half of the total. Since to develop bio-pesticides has become a
remote and spraying machinery for rice fields looks promising. national competitive strategy, the commercial value of bio-pesticides
will be further highlighted.
In addition, the International Symposium on Biodiversity and
Green Development, held on November 22, focused on promoting
Ministry of Agriculture Starts the biodiversity conservation and green development, aiming to enhance
the application rate of bio-pesticides. Currently, the application rate of
Sustainable Development Plan: Bio-
conventional pesticides is quite high, and the pollution of conventional
pesticides Embrace Opportunities for pesticides on the environment is rather heavy, while the application of
bio-pesticides does not cause side effects on crops, conducive to the
Development
development of biological diversity.
Recently, the Ministry of Agriculture officially launched the National Overall, with sustainable agricultural development being the
Sustainable Agriculture Development Plan preparation work, focusing general trend, bio-chemicals of minor side effects, which also favors
on the construction of ecological balance, handling the relationship environmental protection and ecological diversity development, will
between environment protection and agricultural production as well embrace opportunities for accelerated development. There will be
as the bearing capacity of regional resources and environment. Since more room for market penetration increase. Mainstream products
currently there is excessive use of agricultural fertilizers and pesticides such as avermectin, gibberellin and other high-tech bio-pesticides are
in China, the National Sustainable Agriculture Development Plan by expected to take the lead in benefiting from the general trend.
MOA will help increase the application rate of bio-pesticides and other
products of minor side effects.
-6-
ACE SPECIAL ACE SPECIAL
Noposion had exchanged with hundreds With the rising of paraquat price and
of national formulation enterprises, but the increasing of the profitability of
few could meet the cooperation norms related enterprises, Shandong Luba
of public companies. In recent years, the Chemical Co., Ltd., one of the domestic
decline of the gross margin of Noposion companies producing paraquat on a large
has urged it to search for upstream and scale, apparently enjoys this situation.
downstream cooperation of pesticide so Zhao Yan, the general manager of this
as to reduce costs and improve market company, recalled the arduous journey
competitiveness. Unfortunately, the of paraquat production that in the eight
recombination has not been reached years from 2004 to 2012, the company
after two months’ suspension, but the paid too much for the production of
cooperation with Makhteshim Agan paraquat and suffered more difficulties
Industries on AK Network Services is in paraquat production than that in
still under negotiation. According to the glyphosate production, for paraquat only
introduction of Mr. Wang, Makhteshim made profit in three months of 2008
Confusions on the way:
Agan Industries does a very good job in and lost money in all other time. The
the terminal services, especially achieving reason was that leading companies had
Open Your Mind and Break through 2013 China
a lot of successful experience in the blocked the production technology of
market of India and Brazil, so Noposion pyridine for a long time and controlled
Agrochemical Industry Summit intends to cooperate with it. the upstream products of paraquat, so
Luba had no choice but to overcome the
—Sponsored By Fuhua Tongda Mr. Liang Huazhong, becoming the vice difficulty in synthesizing the pyridine
president of Jiangsu Lanfeng Bio-chemical intermediates and get through the
Co., Ltd., specially takes charge of the industry chain. Now, it broadens the
integration, research and development, downstream products of pyridine. Mr.
The issued China Top 100 List of Strategy—Brands and Integration is
foreign trade and some other business of Zhao said that after getting through the
Pesticide Industry in 2013 showed the theme of this forum and also the
the company. He believes that the run of industry chain, Luba could gather the
the achievements made by the elites central topic of the corporate bosses on
each enterprise should surround the brand earning money from pyridine, paraquat
from China pesticide industry in the the rostrum. The integration here has
and integration, and it’s a very important and other downstream products of
past year. Consider the endless power broad meanings, including the change of
time for mergers and acquisitions, so pyridine.
of the force of examples, China Crop ideology, the merger and acquisition of
everybody should cherish this opportunity. In responding to the future market trend
Protection Industry Association (CCPIA) enterprises, the cut-through of industry
When talking about integration, he said of paraquat, Mr. Zhao said that influenced
invited nine representatives in the List chains, the overall thinking of solutions
that the upstream and downstream by the market, the recent price of
to participate in the Fuhua Forum, 2013 and the integration of market.
stretching of industry chain, whether paraquat was indeed high, deviating from
China Agrochemical Industry Summit.
the structure of the product meeting the its cost, which had brought risks to the
needs of development and whether the companies of paraquat technical material
regional environmental capacity meeting and formulations.
To Enhance Competitiveness by Mergers and the sustainability requirements of the
Acquisitions development should all be considered. Driven by Technological Innovation
The integration is not only the acquisition and Market Expansion
As the leading enterprise of pesticide formulation and reorganization of resource between
in China, Noposion Agrochemicals Co., Ltd. has large and small enterprises, but also the Shandong United Agrochemical Co., Ltd.
frequently taken the mergers and acquisitions after proper integration among the competitors, acquired the Technology Innovation
appearing on the market and its major acquisition which he particularly stressed as the Award at this exchange meeting. Driven
to the stock equity of Changlong Agricutural has important means to solve the problem of by the technology and market, the
apparently broadened its industry chain. Since July overcapacity. pesticide sales amount of this company
8 this year, the nearly two months’ suspension of reached RMB 670 million in 2012, a
Noposion has left wide reverie to the industry. In Both Mr. Wang and Mr. Liang believe that significant increase of 75.6 percent over
responding to this, Mr. Wang Shihao, the Deputy mergers and acquisitions is the way to the previous year. Xu Hui, the general
General Manager and Secretary of the Board, said achieve win-win cooperation. manager of the United Agrochemical,
that in recent years Noposion had taken some said that resource advantage, technology
steps in cooperation, set up the Department of advantage and market advantage were
Cooperation and Development and would take Connecting the Industry Chain and very necessary in making a company
cooperation as its largest development strategy Gathering all Resource Together to become successful, but comparing
in the future three to five years. As a result, with other companies, the United
-8- -9-
ACE SPECIAL ACE SPECIAL
Agrochemical had no resource advantage objects on the world top ten innovative company, but set foot in the glyphosate production areas because
and not obvious technology advantage, transnational corporations, analyze of the outage of chlor-alkali, and Fuhua Tongda Agro-chemical
so more efforts had to be made on the the characteristics of the products in Technology Co., Ltd. in Leshan City, Sichuan Province, founded in
market. Recently, after visiting 40 to different stage of the full life cycle, December, 2007, with its production capacity of glyphosate reaching
50 countries, he was sorry to realize and provide specific services that meet 120,000 tonnes now, had become the largest domestic glyphosate
the trampled situation of China that the different requirement of strategic producer.
it produced 60 percent of the global partners.
pesticide but only had 10 percent of Lianhe Technology believed that the The chairman Zhang Hua analyzed the global trend of
market share in the world pesticide products would be replaced at any time, glyphosate, indicating that global demand of glyphosate was more
market. Why should many technical but the service based on the strong than 800,000 tonnes and the glyphosate capacity of China were
material companies of our country not technical support wouldn’t. With almost about 500,000 tonnes. With the further development of GM crops,
make more efforts on the market, but 30 years’ development, it has built seven especially the planting permission of glyphosate-resistant wheat
only be willing to contribute to companies production bases and one technology in the United States, the market of glyphosate will continue to
of other countries? He believed that research and development centre in five enlarge in the future. In 2020, the global glyphosate demand will be
Indian companies did a better job than provinces and one city. Its subsidiary estimated at one million to 1.2 million tonnes and the rigid demand
us, for they first bought TC from China, corporations, with their different of glyphosate indicates that there will be 200,000 to 400,000
then processed formulations in India, technology expertise and advantage, tonnes of increase space in the future. FUHUA has rich hydropower
and finally changed hands to sell the construct the strong technology and resources and abundant coal mine, phosphorite and other mineral
products as the world brand. The United resources that Lianhe Technology needs resources, its upstream supporting projects of glyphosate have been
Phosphorus Limited, a good example, has to serve for its cooperative partners, built, or are under construction or in expansion, and the scale of
entered into Global Top 10, but its sales forming the complete system providing supporting materials, such as Chlor-alkali, caustic soda , hydrogen
amount in 2005 was only 370 million industry chain services. peroxide, paraformaldehyde and glycine, and intermediates rank in
dollars. the front throughout the country.
The refreshing business mode of Lianhe
The United Agrochemical had shrunk the Technology, established after long- FUHUA attaches great importance on environmental security and
domestic market into the areas of 500 term thinking and exploring, is that the has invested over RMB 300 million on environmental protection
km radius, focused in nine aspects, such company takes the need of strategic since last year. Chairman Zhang believes that mother liquor of
as crops, varieties, market and means, partners and its own technology and glyphosate will turn from waste to treasure in the future and FUHUA
reduced the production equipments from resource as the lead, the custom will achieve the cut-through of upstream and downstream industry
the original 16 to 9 in 2008, focused on processing as the practice form and chain of glyphosate. “We take the glyphosate as a banner and
producing neonicotinoid insecticides and provides the full life cycle service of surrounding it we have at least 12 profit points to support FUHUA
also set foot in fungicide. As to the brand, the products. In the past five years, to make profit, so I don’t care about whether the glyphosate
he thought that first the company must the sales amount of Lianhe Technology earn money or not,” said Zhang. He stressed that FUHUA only
do its best to become a regional brand, increased continuously, with the CAGR manufactures and provides good service, the high-quality and low-
then slowly grab the world market and reaching more than 30 percent; in 2012, cost glyphosate products for customers.
finally become the world brand. The the pesticide sales amount of Jiangsu
building of a brand is accumulated from Lianhua Technology Co., Ltd. reached The Products Are Complete and Export-oriented
the little things and should start from the RMB1.81 billion, up by 37.1 percent
most basic management. year-on-year. The passionate statement made by Chairman Zhang was apparently
not deterrent to Liu Anping, the general manager of Hubei Sanonda
Take the 12 Profit Points as the Group Corporation (SANONDA for short). Mr. Liu said that the
Becoming the World Leading Custom Support and Continue to Develop production of PMIDA produced by SANONDA was the largest in the
Processing Service Provider of Fine the Glyphosate Industry whole country and the cost was the lowest; as the brand product
Chemicals of the company, PMIDA didn’t participate in the market bargain;
As the most major pesticide product in the capacity of glyphosate was 20,000 tonnes, not large but exactly
Mr. He Chun said that in the past 30 China even in the world, glyphosate has matched with other products.
years, Lianhe Technology took a special undoubtedly become the hot topic in
development road: custom processing, the forum. Fuhua Tongda Agro-chemical Hubei Sanonda Co., Ltd., with its A share appearing on the market
which was quite different with many Technology Co., Ltd. (Hereinafter called in 1993 and B share appearing on the market in 1997, was the first
other companies. This company was “FUHUA”) in Leshan City, in Sichuan listed company in pesticide industry; in 2005 it merged into China
based on becoming a brand company province, is the major domestic producer National Chemical Corporation (ChemChina for short), becoming
and put forward the concept of the of glyphosate. the wholly-owned subsidiary of China National Agrochemical
full life cycle service of the products. Corporation; in 1989 it first acquired the Import & Export Right in
Lianhe Technology will target its service FUHUA was originally a paper-making the same industry throughout the country, and now the marketing
-10- -11-
ACE SPECIAL ACE SPECIAL
pattern that takes the sale in domestic for Development of the National Pesticide preliminary ruling announcement on pyridine year, the accumulated pesticide production of the
market and foreign trade as the drive and Industry, the production of technical material anti-dumping and began to levy security deposit national pesticide industry reached 2.124 million
export as the domination Close to 70% has of top 20 pesticide producers will account of different rates on many Japanese and Indian tonnes (converted into 100% purity), increased 1.6
been formed recently Makhteshim Agan for more than 50 percent of the total until pyridine companies (In November this year, percent year-on-year; the main business income
Industries, the subsidiary of CHEMCHINA, 2015; build two to three large enterprise Ministry of Commerce again issued a final reached RMB 180.608 billion, a year-on-year
plans to implement partial tender offer to groups, internationally competitive, the ruling announcement on pyridine anti-dumping, increase of 18.5 percent; the total profit reached
the B share of SANONDA through Dutch sales amount of which will reach more than confirmed the existence of dumping and took RMB 12.594 billion, up by 40.5 percent year-on-
company Celsius Property B.V. RMB 10 billion. In recent two years, the measures of security deposit to Japanese and year. The profit growth was significantly ahead
herbicide becomes very popular in pesticide Indian related companies), which contributed of sales growth, thriving in the national chemical
SANONDA has a great variety of industry but the insecticide shows not so to the rising of the price of pyridine and its industry, which aroused widespread attraction in
products, with three major series of much improvement. Paraquat, glyphosate downstream products. capital market.
organophosphorus, pyridine and phosgene, and other bulk hot products sell well, which
three major categories of insecticides, attracts a great attention in the capital When talking about the influence of Zhang Liyang, the principal analyst of Hong
antiseptics and herbicides and more than market. Xia Shu, the general manager Announcement No. 1745 on the market, Mr. Yuan Securities Co.,Ltd., Zheng Fangbiao, the
100 varieties, becoming the core company of Nanjing Red Sun Co., Ltd. (RedSun Xia expressed that according to the data of chief researcher of chemical industry of Industrial
of CHEMCHINA in agrochemical business. for short), believes that the promotion of customs, 75 percent to 80 percent of the Securities Co.,Ltd., Guo Jingpu, the chief analyst
planning and environmental policy brings domestic paraquat was for export and only 20 of Cinda Securities Co.,Ltd., and Qiu Xiaofeng,
The forbidden of methamidophos had a a boom cycle to the industry. The Mergers percent to 25 percent was sold in the domestic the chief analyst of petrochemical industry of
very bad influence on SANONDA, forcing and acquisitions among the companies are market, so the Announcement had little China Galaxy Securities Co.,Ltd. made statements
the development of acephate. The export in progress, so a new round of change will influence on the future paraquat market. On and participated in discussions, and their
situation of acephate is very good and its come in pesticide industry. September 25, 2013, the RedSun officially presence had also become the highlight of the
daily output increases from the original registered paraquat soluble glue (20%), which forum.
5 tonnes to current 50 tonnes. Paraquat The RedSun is one of the earliest pesticide was the first official registration in addition “Engaging in the industry is doing addition
is one of the capable products on the companies that make use of the capital to paraquat water removal agents in China, and entering in the capital market is doing
pyridine industry chain of SANONDA, too. market to achieve their development. In thus laid a foundation for the market butt of multiplication,” said the general manager Xia
However, Mr. Liu is still most worried about 1993, through injecting products pyrethroid, paraquat. Shu. So, when occurs a butt joint between capital
environmental issues, for SANONDA is it realized Back Door Listing; in 2008, it market and pesticide industry, which kind of
positioned to take the technical material launched an overall listing and injected According to the statistics made by the National hybrid operation will it do? Let’s wait and see.
production as the lead and formulation pyridine base industry chain; in 2011, three Bureau of Statistics, from January to August this
processing as the complement. He said industry chains of pyrethroid, hydrocyanic
that if one product produces more than five acid and pyridine base were formed after
tonnes of waste water, the company must recombination. Through the upstream and
carefully consider about it; more efforts downstream integration, it built a whole
should be made so as to fully comply with industry chain, including technical material,
the national environmental requirements. intermediates, formulations and sales.
He also stressed that the environmental
protection must start first in order to With ten years’ development, RedSun took
realize the sustainable development of the the lead in independently researching and
company. developing the pyridine base production
technology that had been monopolized
Mr. Liu thinks that SANONDA has no by leading companies for more than 50
advantage in producing innovative years, contributing to the rapid development
products, so more efforts are made to of paraquat and other pyridine pesticides.
promote former products and achieve However, with the intervention of Japanese
scale, serialization and automation of the and Indian companies in China pyridine
project. The 2,4-D production line now market, the price of pyridine declined all the
owned by SANONDA is the only set of time and in 2012 fell to RMB 24,000 to RMB
continuous device in our country. 25,000 per tonne. From September 21,
2012, under the lead of the RedSun, the
The Boom Cycle and Environmental Ministry of Commerce carried on anti-
Drive dumping investigations on imported pyridine
originating from India and Japan; on May
According to the Twelfth Five-Year Plan 27, 2013, Ministry of Commerce issued a
-12- -13-
ACE SPECIAL ACE SPECIAL
2012 TOP 100 Pesticide Enterprises in
2012 Top 30 Pesticide Formulation
China Released in Oct
Enterprises of China Released in Oct
After three consecutive years’ recession, and Zhejiang province, the traditional
from 2009 to 2011, China’s pesticide major pesticide provinces, still ranking
industry showed an upward trend in the top three. The total number of the
2012 and maintained a steady and pesticide companies shortlisted in the Top Top 30 Pesticide Formulation the sum sales amount of which reached
rapid growth. Larger domestic pesticide 100 List in these three provinces was 64, Enterprises of China in 2012 was RMB 740 million. Guangdong province,
companies all achieved good sales slightly less than last year’s 72. The sum of issued on the 13th AgroChemEx in Guangxi province and Shaanxi province
performance. According to the statistics the sales amount of these three provinces Shanghai on October 16, Shenzhen each has three companies in the list
made by the China Crop Protection reached RMB 54.52 billion, increased 19.7 Noposion Agrochemicals Co., Ltd., ranked third together.
Industry Association (CCPIA) on pesticide percent, compared with that in 2012, which with the sales amount of RMB 1.59
sales performance of each enterprise in was RMB 45.55 billion, accounting for billion, ranked first, Jiangsu Rotam The sales amount of Shenzhen
2012, Top 100 pesticide sales enterprises 68.9 percent of the total sales of the Top Chemistry Co., Ltd., with the sales Noposion Agrochemicals Co., Ltd.
of China was released. 100 companies, slightly lower than 2011’s amount of RMB 1.07 billion still reached RMB 1.53 billion in 2011 and
73.6 percent. The number of the pesticide ranked second, and Guangxi Tianyuan increased about RMB 60 million in
From the performance of the Top 100 companies shortlisted in the Top 100 list Biochemistry Co., Ltd., with the sales 2012, a 3.9 percent of increase. The
pesticide sales companies in 2013, we in nine provinces in the Midwest reached amount reaching RMB 870 million sales gap of the Top 30 formulators
could figure that the threshold for the 24, 6 more than that in 2011, which was in 2012, ranked third together with greatly reduced compared with that
shortlist of top 100 companies continued 18; and compared with RMB 11.25 billion Syngenta (Suzhou) Crop Protection last year. The sales gap between the
to improve significantly, from RMB 200 in 2011, the total sales of these companies Co., Ltd., who ranked the same as last ranking first company and the ranking
million in 2012 to RMB 257 million in reached RMB 15.71 billion, increased year. second company was RMB 720 million
2013, an increase of RMB 57 million, 39.6 percent, with the growing rate much last year but only RMB 520 million this
reflecting the strengthening of the scales higher than the average value, accounting The sales amount of this year’s Top year.
and strength of the national pesticide for 19.9 percent of the total sales of 30 formulators were all more than
companies. At the same time, the total the Top 100 companies, 1.7 percentage RMB 110 million in 2012, and the The number of the companies in the
sales revenue of Top 100 pesticide point higher than that in 2011. All these total sales amount reached RMB Top 30 list, with their sales amount
companies in 2012 reached RMB 79.11 data showed that the tendency has been 10.87 billion, increased RMB 2.51 reaching more than RMB 300 million,
billion, increased 27.9 percent, RMB 17.25 becoming more and more obvious. billion, an increase of 30.0 percent was 12 this year while only 7 in 2012;
billion more than that in 2011, which was compared with the RMB 8.36 billion and the total sales amount of these 12
RMB 61.86 billion. All fully demonstrated The number of the Top 100 companies, last year. As to the location, these companies was RMB 7.33 billion this
that the large-scale companies were with their sales amount reaching RMB 1 Top 30 formulators were located year, accounting for 67.4 percent of
playing more and more important roles billion, unprecedentedly reached 24 this in 13 provinces, municipalities and the total sales amount of the Top 30
in the economic and industrial structuring year, and there were only 10 in 2010 autonomous regions. Jiangsu province preparation companies, far more than
and the market of pesticide products, as and 16 in 2011; and the sales amount with seven companies in the list the 57.8 percent of last year. The above
the rigid demand, was slowly gravelling of these companies was RMB 40.61 ranked first, the sum sales amount data showed that the advantages of
and constantly strengthening. billion, accounting for 51.3 percent of of which reached RMB 3.06 billion in large-scale companies were becoming
the total sales of the Top 100 companies, 2012, accounting for 28.1 percent more and more obvious and the
From the provinces in which the Top far more than the 36.3 percent of the of the total sales amount of the Top effects of structural adjustment were
100 pesticide sales companies in 2012 last year. These data showed that the 30 companies. Shanghai with four increasingly showing up.
were located, we could know that companies were moving towards intensive companies in the list ranked second,
the trend that the area of pesticide development and the advantages of large-
industry was spreading to the Midwest scale companies were becoming more
was strengthening. These Top 100 and more apparent, which were good
companies were located in 17 provinces, to the decrease of business risk and the
municipalities and autonomous regions, increase of the companies’ international
with Jiangsu province, Shandong province competitiveness.
-15-