Thursday, November 22, 2012

Jiangsu Lianhe launches 300t/a carfentrazone-ethyl production

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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