Recently, Jiangsu Lianhe Chemical
Technology Co., Ltd. (Jiangsu Lianhe) announced that its 300t/a
carfentrazone-ethyl technical project had got complete check from Environmental
Protection Agency of Yancheng City on Oct. 17, 2012 and the 300t/a
carfentrazone-ethyl technical production line has been launched in Jiangsu
Xiangshui Chemical Industrial Park of Xiangshui County, according to CCM’s
November Issue of Herbicides
China News.
Revealed from Jiangsu Lianhe's
announcement, the company totally invested about USD24.3 million (RMB152.05
million) on the project, and thereinto about USD1.6 million (RMB9.8 million)
was invested on environmental protection. In fact, on April 29, 2011, Jiangsu
Lianhe accomplished the additional public issue of 19,295,700 shares, and the
additional capital (about USD103.7 million/RMB648.0 million) raised was
invested into two projects which include a series of pesticide and intermediate
production lines, such as carfentrazone-ethyl.
It seems that carfentrazone-ethyl
project was pushed slowly. In fact, the 300t/a carfentrazone-ethyl trial production
was finished in Feb. 2011. After the trial run, the production line had been in
debugging in Jiangsu Lianhe till Oct. 2012 when the project was put into
operation. (Herbicides China News 1104: Lianhe Technology initiates
carfentrazone-ethyl production)
In an estimate, Jiangsu Lianhe
takes a conservative attitude towards the new product, carfentrazone-ethyl,
although the company got a nice performance in H1 2012. According to the
semi-annual report of Jiangsu Lianhe released in July 2012, its net profit has
reached about USD21.6 million (RMB135.1 million) in the first half of 2012.
Jiangsu Lianhe considers that the
new product may face risks after being launched to the market, because Jiangsu
Lianhe can't sure that the quality and profit of this new product are able to
help the company gain a leading position. In addition, whether the new product
can adapt to the changes in market demand is uncertain.
At any rate, the 300t/a
carfentrazone-ethyl capacity makes Jiangsu Lianhe outstanding among other
Chinese carfentrazone-ethyl pursuers. Furthermore, Jiangsu Lianhe enjoys
self-supply of o-fluoroaniline, the raw material of carfentrazone-ethyl, and
can lower the production cost in the carfentrazone-ethyl production. Besides,
the company can also extend its production chain towards downstream production
by producing carfentrazone-ethyl. As a result, Jiangsu Lianhe's profit room in
the future is expected to be larger.
It's suspected that Jiangsu
Lianhe's carfentrazone-ethyl production is run as the company's customized
manufacturing services. As the developer of carfentrazone-ethyl, FMC
Corporation has stable cooperation relationship with Jiangsu Lianhe. Naturally,
FMC Corporation is considered as one of Jiangsu Lianhe's potential clients of this
new product.
As of Oct. 2012, there are five
companies with carfentrazone-ethyl technical registration in China, according
to the Institute for the Control of Agrochemicals, Ministry of Agriculture
(ICAMA), namely Jiangsu Lianhe, Jiangsu Baozong & Baoda Pharmachem Co.,
Ltd. (Jiangsu Baozong & Baoda), Shandong Cynda Chemical Co., Ltd., Luzhou
Dongfang Agricultural Chemical Co., Ltd. and FMC Corporation.
In fact, carfentrazone-ethyl has
only a few pursuers in China
currently due to technological barriers. Although the administrative protection
of carfentrazone-ethyl technical patent in China (the administrative
protection number: NB-US99010415) has expired for almost five years since 2008,
Chinese pursuers still can't master the production technology of
carfentrazone-ethyl by now. Moreover, the high price of carfentrazone-ethyl
drags down its consumption in China.
In Nov. 2012, FMC Corporation quoted the 40% WG at about USD0.21 million/t
(RMB1.3 million/t).
Besides Jiangsu Lianhe and FMC
Corporation, only Jiangsu Baozong & Baoda owns carfentrazone-ethyl
technical production line. In addition, Jiangsu Baozong & Baoda plans to
expand its carfentrazone-ethyl technical production line from 160t/a to 300t/a
and this production line has got the EIA acceptance by Nantong Environmental
Protection Bureau on June 26, 2012.
It's predicted that
carfentrazone-ethyl will become another profit growth point of Jiangsu Lianhe.
Although carfentrazone-ethyl has brighter prospect for its excellent effect, in
a short time, there will be only a few carfentrazone-ethyl manufacturers in China due to
the technological barriers. As a result, Jiangsu Lianhe can maintain relatively
high profit on that product.
Carfentrazone-ethyl, a
post-emergent triazolinone herbicide, is usually applied in the fields of
wheat, rice, corn, etc. Contributed by high selectivity and excellent effect,
40% carfentrazone-ethyl SC marketed as Affinity® could control many broadleaf
weeds, such as bedstraw, China Weasel-snout, Veronica Henryi yamazaki and so
forth, with dosage of only 60~75g
a.i./ha.
Jiangsu Lianhe, a subsidiary of
Lianhe Chemical Technology Co., Ltd., is built in 2003. The company is mainly
engaged in pesticide and intermediate production and sales. Up to now, the company
has achieved six herbicide technical registrations in China. The main
products are clomazone, fomesafen, metamifop and fluthiacet-methyl.
Source: Herbicides China News 1211
Content of Herbicides China
News 1211:
Stable
growth in Lier Chemical in Q3 2012
Lier
Chemical gets govermental support
Jiangsu
Kuaida enhances intermeidate capacities
Significant
asset reorganization in Sanonda in progress
Jiangsu
Huifeng completes technological transformation project
Clodinafop-propargyl
draws interest in China
Diuron
price continually slips in Oct.
Paraquat
price keeps ascent in Oct.
Clopyralid
TC export volume grows in Jan.-Aug. 2012
Indonesia, the biggest
cyhalofop-butyl export destination in China
Jiangsu
CF enhances 2,4-D and MCPA production
Jiangsu
Lianhe launches 300t/a carfentrazone-ethyl production
Diquat
supply appears short in Q3 2012
Atrazine
meets tense supply in Oct.
Price
Review in Nov. 2012
Chongqing
Huapont Jiangsu Tenglong Jiangsu
Agrochem Laboratory CAC Nantong anti-dumping pyridine fluroxypyr Pendimethalin
clodinafop-propargyl metamitron PMIDA Clethodim
flumioxazin diuron Dicamba
Herbicides
China News, a monthly
publication issued by CCM on 15th of every
month, provides you with
the latest occurrences, exclusive analysis on the market trend as well as
professional reviews on competitiveness of companies, products and relative
industries in China’s
herbicide industry.
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