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Zhejiang Runhe Chemical New Material Co.ltd Zhejiang Zhongshan Chemical Industry Group P80P4Inside Front Cover P3P18P86Back CoverP84P83P2P19P42P85P40P83P16P8P7P89P18P1P25P60P5Inside Back

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Suppliers Guide

Product Index

China Pesticide Suppliers Guide 2020 1

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Suppliers Guide Product Index

China Pesticide Suppliers Guide 2020

2

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Market Overview

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2

Market Overview

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Market Overview

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4

Market Overview

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Market Overview

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Market Overview

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Market Overview

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China Pesticide Suppliers Guide 2020

Advertiser Index

Beijing Kingbo Biotech

Beijing Multigrass Formulation

Fuhua Tongda Agro-chemical Technology

Hailir Pesticides and Chemicals Group Co., Ltd

Hangzhou Pulan Biotechnology Co., Ltd

Hangzhou Ruijiang Crop Science

Iprochem Company Limited

Jiangsu Agrochem Laboratory

Jiangsu Sword Agrochemicals

Jiangsu Yangnong Chemical

Jiangyin Milagro Chemical Co., Ltd

Jingbo Agrochemicals Technology

Jingma Chemicals

King Tech Corporation

Lier Chemical Co., Ltd

Limin Chemical Co., Ltd

Ningxia Taiyicin Biotech Co., Ltd

Qilu Pharmaceutical (Inner Mongolia) Co., Ltd

Shandong Binnong Technology Co., Ltd

Shandong Kangqiao Bio-technology Co., Ltd

Shandong Weifang Rainbow Chemical

Shanghai IPRO-DVA Inspection Technology Co., LTD

Shanghai Mingdou Chemical

Shenzhen King Quenson Industry Co., Ltd

Sichuan Lomon Bio Technology Co., Ltd

Sino Agro-chemical Industry

TIDE GROUP

Yifan Biotechnology Group

Zhejiang Longyou East Anasac Crop Science Co Ltd

Zhejiang Runhe Chemical New Material Co.ltd

Zhejiang Zhongshan Chemical Industry Group

P80P4Inside Front Cover

P3P18P86Back CoverP84P83P2P19P42P85P40P83P16P8P7P89P18P1P25P60P5Inside Back Cover

P80P40P37P22P12-13P6

Analysis of China’s Pesticide Export to Eastern European Countries in 2019

The Challenges And Opportunities of Purchasing from China

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Disclaimer: If some advertisements and product profiles in this issue contain references to active ingredients still under patent protection in certain countries, such content are deemed inapplicable to those countries.

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10

Cover Story

Runhe,

helps farmers with organosilicone

In the face of the growing population, declining

land, rising food demand and increasingly severe

environmental requirements, people need to develop

more efficient and safe pesticides However, new

pesticides have a long development cycle, need huge

investments, have high risks, and low success rates,

especially for modern and super efficient pesticide

varieties With the rapid development of pesticide

synergists, many new dosage forms have emerged,

as required by the times In traditional pesticide

spraying, only 20-30% of the chemical solution can

be stored on the leaves of crops, and 70-80% of

the pesticide is lost to the soil and the environment, which not only increases the pesticide residue, but also pollutes the environment and leads to the wastage of water As a result, scientists are trying

to find a more efficient adjuvant that can keep more

of the spray solution on the leaves and also spread rapidly Then, only a small amount of the spray can

be used to make the pesticide more quickly and effectively make contact with the invading enemies After unremitting efforts and experiments, in the 1980s, scientists finally developed the agricultural silicone surfactant

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The agricultural silicone surfactant is also called

synergist, pesticide adjuvant, organosilicon etc It is

ethoxylated polytrisiloxane, and it is a light yellow

transparent liquid It can be widely used in spraying

agricultural chemicals such as pesticides, fungicides,

herbicides, foliar fertilizers, plant growth regulators

and biological pesticides etc, to achieve efficiency,

savings in water usage, labor and pesticides, and

reduce pesticide losses and pesticide residue

Characteristics of agricultural silicone surfactant

1 Super spreading, penetrating and sticking ability.

2 It has a strong vertical penetration and a horizontal spreading property, which can penetrate the plant leaves rapidly.

3 Reduces the surface tension quickly and rainfastness

4 Improves the pesticide-applying efficiency, reduces the amount of pesticides, spray amount, pesticide residues, and saves water

5 Nonionic and is compatible with most pesticides

Runhe, a professional manufacturer of silicone products, was established in 2000 and has a 20-year- long history It is one of the leading silicone listed enterprises in China It is focused on scientific and technological innovation, committed to the development and production of agricultural silicone surfactant and its core raw materials Runhe helps farmers around the world increase crop production and reduce production costs

RUNHE’S AGRICULTURAL SILICONE PRODUCTS

AGRICULTURAL SILICONE SURFACTANT

SILICONE DEFOAMER

LOW FOAM WETTING AGENT

AERIAL PESTICIDE SPRAY ADJUVANT

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12

Market Overview

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Market Overview

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14

Market Overview

Chinese Pesticides under Safety and

Environment Pressure: Production

Shrinks, Industry Monopoly Emerges By Mickey Shan

Editor of AgroPagesmickey@agroapges.com

In the context of China's macro policy, the pesticide

industry, as a traditional high-pollution and high-risk industry,

has been under great pressure from environmental protection

for several years In March 2019, a major explosion in

Xiangshui Chemical Industry Park caused nearly a hundred

casualties This chemical industry park in Jiangsu, the province

with the most production of pesticide chemicals in China, was

instantly ruined The government had to carry out in-depth

policy interventions and a large-scale shutdown of production

throughout the country The pesticide industry has experienced

greater downward pressure, and there has been a trend of

negative growth in its domestic production

This explosion in Xiangshui has made a far greater impact

than it appears on this industry Since March 2019, there has

been a negative atmosphere over the entire chemical industry

in China Correspondingly, many agrochemical companies

have successively exited from the market AgroPages'

incomplete tracking of Chinese companies' mergers and

acquisitions as well as overseas and domestic investment

events in 2019 found that China's leading companies' domestic

and overseas acquisition/investment efforts are intensifying,

and the access barriers to China’s technical production

industry have increased, and the industry concentration has

further deepened

The production of China's pesticide industry in 2019 was

still under pressure from environmental protection inspections,

and the Xiangshui explosion in March aggravated this situation

The North Jiangsu Chemical Industry Park launched a

large-scale rectification effort, and the large and small chemical

companies in Xiangshui, Binhai and Dafeng also suspended

pesticide production overnight Other major provinces in

chemical production also issued a series of related regulations

and policies The rectification effort in chemical industry parks

across the country was in full swing In such a situation, people

in the pesticide industry always suffer from such words as

"production suspended for inspection", "closed", and "indefinite

suspended production"

According to the incomplete information tracked by

AgroPages, since March, the safety inspection of the chemical parks nationwide has involved such provinces as Jiangsu, Hebei, Hubei, Henan, Sichuan, Shandong, Zhejiang and Shaanxi, basically covering all key provinces in China’s pesticide production And the industry has never seen more intensified inspections or stricter requirements before After the explosion, all chemical companies in coastal cities

of Yancheng and Lianyungang in Northern Jiangsu were shut down Since then, many chemical parks in many provinces across the country have been inspected, and all enterprises in the parks have ceased production The direct consequence of this series of hurricane-like policies is that China's output of chemical pesticides has greatly fallen in 2019

According to the data of National Bureau of Statistics, in the past

10 years, China’s pesticide output has shown a downward trend for three consecutive years since it reached a peak of 3.741 million tons (converted to 100% concentration, the same below) in 2015 In

2018, the output was only 2.083 million tons During the first three quarters of 2019, the national output of pesticide technical was 1.511 million tons, representing a year-on-year decrease of 20% Compared with the same period in 2018, the output of pesticide technical from January to September 2019 declined at different degrees As the province with the largest production volume of pesticide technical in China, Jiangsu Province had a cumulative output of 468,100 tons in the first three quarters, accounting for 30.98% of the national output, but a 25% decrease compared to the first three quarters of last year

At the end of 2019, the tense domestic production situation recovered slightly In October, after several months of production

2015 2016 2017 2018 2019（Q1-Q3）0

0.511.522.533.5

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Market Overview

suspension, Fengshan Group's technical synthesis workshop

officially started to resume production on October 25, 2019

Fengshan Group also became the first chemical company in

Yancheng that received approval for resumption of production

The Northern Jiangsu chemical enterprises whose production

has been suspended this time may not resume production

by itself, and they will be subject to the “one policy for one

enterprise” The government's approval progress not only

determines the fate of the chemical companies involved, but

also affects the next development of their counterparts in China

As of press time, the resumption of production of Jiangsu

Huifeng, another listed company located in Northern Jiangsu,

is still in the publicity stage With the resumption of production

of these enterprises, the demand for certain domestic technical

products will be somehow met However, the long-term

existence of pressure on safety and environmental protection is

beyond doubt

Under such huge policy pressure, the disappearance of

orders, customer loss, market loss, operating loss, and tight

capital turnover are just an external manifestation of the difficult

survival of pesticide companies From the perspective of

long-term development, the corporate reputation damage caused

by delayed delivery, the loss of core talents, and the inability to

quickly switch to new businesses with more sustainable growth

are the biggest obstacles for the development of Chinese

pesticide companies

- Frequent major M&As, emerging industry

monopolies

During 2019, the frequency of mergers and reorganizations

of various scales in the domestic agricultural materials industry

was higher than that of the previous year Small and scattered

pesticide companies accelerated their withdrawal It is more

and more difficult to get the access permission for the technical

industry Companies that invested heavily in environmental

protection and safety in the early stage have gained greater

resistance to risks, and have launched a "keep-buying"

model, using capital leverage to reshape their production

and operation patterns The increasing investment and the

high-cost standardized operation have ended the era of

low-price technical, making strong enterprises stronger Thus, the

monopoly of single products is formed, and the industrial chain

of enterprises continues to expand According to information, in

2019, nearly 100 companies in the domestic pesticide industry

have made large or small mergers, and several of them have

significantly accelerated the concentration of the industry and

have laid the foundation for oligopoly

- February 2019: Jiangsu strictly forbade building new chemical parks and enterprises within 1 km along the Yangtze River

- February 2019: Jiangsu and Shandong launched the emergency response system for heavy pollution, shutting down or limiting production at many chemical plants!

- February 2019: Jiangsu launched an environmental improvement project for chemical parks

- March 2019: Hebei: All chemical companies without safety production conditions were banned

- April 2019: Hubei launched strict policies on chemical Industry parks

- April 2019: Yancheng decided to completely close Xiangshui Chemical Park

- April 2019: Jiangsu planned to significantly reduce the number of chemical companies or chemical parks, or from 50 to 20

- May 2019: the campaign of "Solid Waste Clearance 2019" involved 126 cities in 11 provinces along the Yangtze River

- May 2019: From June 1st, provinces in more than half of China including Shandong, Jiangsu, Guangdong and Hubei would conduct a large-scale safety inspection for chemical companies

- June 2019: Henan conducted a special rectificationcampaignfor 758 companies of hazardous chemicals

- June 2019: Sichuan strictly limited the establishment of new chemical projects along the Yangtze River

- June 2019: Hubei launched a special safety rectification campaignin the field of hazardous chemicals, which lasted until the end of the year

- August 2019: Industrial enterprises in 28 cities might need to stop or suspend production for maintenance in order to welcome the "parade blue"

- September 2019: Jiangsu, Shandong, Hebei, Zhejiang and Guangdong started the "inspection mode", and chemical companies might face production suspension

- September 2019: Jiangsu planned to close 9 chemical parks, close 1,431 and rectify 4022 chemical companies

- September 2019: Office of the Work Safety Committee of the State Council conducted spot checks on chemical parks around Beijing

- September 2019: Shandong strictly restricted the establishment of new projects of highly toxic chemicals, and shut down 3 types of enterprises without conditions for safe production

- October 2019: The second batch of the secondround of central government’s ecological and environmental protection inspections was to start within 2019

- November 2019: Hebei launched the special "Slashing Sword Campaign for Pollution Treatment", which would last for 5.5 months

- November 2019: The Work Safety Committee of the State Council: conducted centralized rectification of safety production in fields such as hazardous chemicals for three months

- December 2019: Inner Mongolia would no longer plan new chemical parks

Major environmental and safety related policies issued by Chinese provinces in 2019

Pesticide companies make adjustments

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Market Overview

Agrochemical giant ADAMA acquired 50% equity in Shanghai Dibai, a wholly-owned subsidiary of Huifeng, for 370 million yuan, greatly promoting its business development in China and even the world, and strengthening the backward integration and competitive advantages of key technical Limin reorganized Veyong, and would synergize its main business of EBCDs (fungicide) with a variety of insecticide products, such as emamectin benzoate and abamectin, in the Veyong pesticide sector, so as to complement their structural and technical advantages of the two companies in pesticide products

After the equity transfer, Luxi Chemical's actual controller would be changed to Sinochem Group In the future, Sinochem Group would provide Luxi Chemicals with diversified support

in terms of technology, capital, new materials, etc., and would accelerate Luxi Group’s development through various ways like expanding investment and industrial chain coordination, so

as to build a world-class chemical new material industry park

At the beginning of 2020, a great change took place in the Chinese agrochemical industry On January 5, after the equity transfer of Sinochem Group, Zhejiang Chemical and Sinochem (Shanghai) Agricultural Technology Co., Ltd (will

be renamed to Syngenta Group), which are stakeholders of Yangnong Group, the Syngenta Group Co., Ltd., which merged the agricultural assets of Sinochem Group and ChemChina, will soon be officially established ChemChina plans to transfer 100% of its shares in Syngenta AG and 74.02% of its shares

in ADAMA to Syngenta Group In addition, Syngenta Group intends to accept the transfer of Sinochem Group's main assets in the agricultural sector So far, Syngenta Group, with a national team background, has formally established

a full industrial chain layout covering the four major fields of fertilizers, pesticides, seeds and digital agriculture Based on this, Sinochem will build a strategic platform for agricultural MAP（Modern Agriculture Platform）, combining modern agricultural products and service resources extensively to form

a symbiotic and harmonious modern agricultural ecological service circle, so as to build a modern agricultural production and management system

Multinational companies have also begun to participate in this wave of domestic restructuring UPL, a representative of Indian companies which have a rapid rate of global expansion, has acquired 100% equity in Yoloo Laoting Biotechnology from Beijing Yoloo Bio-Technology Corporation through its Hong Kong branch, and issued 25% equity of the Hong Kong branch

to Beijing Yoloo Previously, UPL announced in February 2019 that it had formally completed its acquisition of Arysta with

a transaction value of US$ 4.2 billion, making it one of the world's top five agricultural solutions providers Through this acquisition of Laoting Yongle, UPL will obtain Yoloo Laoting 's extensive distribution channels, product registration certificates and opportunities to enter the Chinese market, which will lay a solid foundation for its growth in China

Major M&As of Chinese agrochem companies in 2019:

1 Guoguang acquired 100% equity of Yier Shuangfeng

held by Chongqing Shuangfeng;

2 Jiangshan acquired 67% equity of Harbin Limin;

3 Huilong acquired 90% equity of Hemei Kechuang;

4 Zhengbang Technology transferred 100% equity of

Zhengbang Crop Protection Co., Ltd.;

5 Yangnong Chemical intended to acquire 100% equity

of Sinochem Crops and 100% equity of Shenyang Sinochem

Agrochemical R&D Company;

6 Noposion purchased 55% equity of Jinsui Group;

7 Noposion acquires 52.9412% equity of Yunnan Huayun

Jinxin;

8 ADAMA acquired 50% equity in Shanghai Dibai

9 Limin purchased 100% equity of Veyong Asset Group

held by ENN;

10 Heyi acquired 2% equity of Changlong Agrochemical;

12 ENN acquired 25% equity of Inner Mongolia New

Veyong from JOMAX Investment (already held 100%);

12 Luxi Chemical was merged into the central enterprise,

and the actual controller was changed from Liaocheng

SASAC to Sinochem Corporation

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Market Overview

- Consolidation and re-optimization of resource

In addition to mergers and acquisitions, Chinese pesticide

companies continued to deepen their capital advantages in 2019,

frequently increased capital and expanded production of their

business subsidiaries, and accelerated the construction of various

projects At the same time, the overseas expansion strategy was

implemented methodically Many listed pesticide companies were

involved

Red Sun Group, a leading company in the field of biochemical

pesticides, increased capital to its subsidiaries Chongqing Huage

Biochemical and Anhui Redpont around 2019 In addition, it

established Chongqing Global Village Biochemical through

Chongqing Huage’s investment Chongqing Global Village

Biochemical will mainly undertake the two major circular economy

industrial chain projects of Red Sun’s biochemical glufosinate

and biochemical L-glufosinate With the gradual launch of the

two major projects, the layout of the Red Sun’s industry chain

has been improved In addition, Red Sun also invested in the

establishment of Sino-Agri Red Sun (Nanjing) Biotechnology Co.,

Ltd with Sino-Agri Leading Biosciences, the only domestic listed

company of pesticides distribution, to combine the advantages

of international product resources, sales networks, and the

country's main distribution channels, and grasp the new business

opportunities brought by accelerated integration of large global

agrochemical companies

Suli Co., Ltd increased its investment to its holding subsidiary

Bailly Chemical’s project construction, followed by a capital

increase of 90 million yuan in Suli Ningxia, which is a newly

established subsidiary of Suli Co., Ltd at the end of 2018

Because Suli is located in Jiangsu, its original production was

under great policy pressure The company stated that it would use

the resources of the central and western regions to cultivate new

profit growth points for the company

In addition, Jiangshan, Changqing, ABA, Xingfa, Limin and

other listed companies have also expanded their development

paths through capital investment for consolidation or

re-optimization Xingfa Group invested over 700 million yuan to

construct a mining project in Xingshan County, Hubei Province,

which will eventually form a mining capacity of 2 million tons per

year As one of the largest fine phosphorus chemical companies

in China, this move will further enhance Xingfa's phosphate rock

resources and consolidate its upstream and downstream industrial

chains Jiangshan Co., Ltd and Sinotrans Changjiang Co., Ltd

jointly invested and established Nantong Jiangshan Sinotrans

Port Storage Co., Ltd to ensure the company's international

transportation and logistics activities

Noposion, China’s largest pesticide formulation company,

continued to extend to the planting end In 2019, through the

establishment of Hainan Shengteng and investment in Yunnan

Huayun Jinxin, it entered the tropical fruit and industrial hemp

markets, respectively, and actively explored and cultivated new

strategic core growth points, moving forward to its strategic goal

Domestic investment events of Chinese pesticide companies in 2019:

1 Noposion established its subsidiary Hainan Shengteng, with the main business of tropical fruits

2 Hunan Haili intended to set up a wholly-owned subsidiary Ningxia Haili

3 Red Sun intended to set up Chongqing World Village Biochemical, a wholly-owned subsidiary, to accelerate the implementation of the glufosinate industrial chain project

4 Red Sun increased capital to its subsidiary Chongqing Huage to promote the accelerated release of independently innovated and transformed fruits into productivity

5 Jiangshan established wholly-owned subsidiaries Nantong Jiangshan New Energy Technology Co., Ltd and Nantong Jiangshan Crop Science Co., Ltd to optimize resource allocation, extend the industrial chain, and promote industrial transformation

6 Suli intended to increase capital to its holding subsidiary Bailly Chemical to promote the subsidiary’s projects and strengthen its capital strength

7 East Lake Hi-Tech established a subsidiary in Shanghai

to improve the company's R&D capability and comprehensive competitiveness

8 Changqing established a wholly-owned subsidiary

in Jingmen, Hubei to optimize the industrial layout, enrich product structure, expand production capacity, and improve profitability

9 BSM Chemical increased capital to its holding subsidiary, Jiangsu Yongan, for the implementation of

a series of product projects such as pendimethalin and methoxyfenozide

10 Limin invested in Xinjiang Xinrong to broaden the investment platform and help the company's industrial development

11 ABA Chemicals invested in Yuchang Fine Chemical to establish an important intermediate production base

12 Noposion invested in Yunnan Huayun Jinxin to lay out the industrial hemp market

13 Jiangshan cooperated with Sinotrans to set up a port storage company to improve its industrial chain

14 Suli planned to increase capital of 90 million yuan to Suli Ningxia, to lay out its medium and long-term development

15 Red Sun and Sino-Agri Leading Bioscience jointly established a cross-border green pesticide supply chain venture company

16 Fengle Agrochemical invested 18 million yuan to carry out technical transformation projects on synthetic production lines

17 Xingfa Group planned to invest 750 million to build a Houping phosphorous mine, a mining project with an annual output of 2 million tons, to consolidate the upstream and downstream industrial chain of phosphorous chemical industry

18 Red Sun increased capital of 50 million yuan to Anhui Redpont to strengthen its subsidiary’s capital strength

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Market Overview

of creating a new development pattern consisting of "agricultural

materials distribution, integrated agricultural services and

characteristic crop industry chain"

While guaranteeing the foundation for domestic development,

the overseas expansion of China’s agrochemical companies is

also being carried out in an orderly manner, quickly entering the

markets through acquisitions In addition to ADAMA's channel

acquisitions in France, Romania and Peru, Red Sun also

expanded the acquisition to Argentina, acquiring 60% equity of

Ruralco Also in South America, Tide Group also acquired 100%

equity of Brazilian distributor Prentiss Química In addition, some

companies chose to directly set up overseas branches, or to

increase investment in their existing overseas branches to quickly

increase the presence of overseas markets In 2019, Jiangshan,

Suli, and Hailir established subsidiaries in the United States, the

Philippines, and Brazil, respectively In particular, Hailir established

branches in both Brazil and the Philippines to enhance registration

of its overseas products and expand international sales channels

and customer resources

As a representative enterprise for the overseas expansion

of China's pesticide agrochemicals, Rainbow's agrochemical

Overseas investment events of Chinese pesticide

companies in 2019:

1 Jiangshan Co., Ltd invested in the establishment of a

wholly-owned subsidiary in the United States to expand the US

market

2 Suli Co., Ltd planned to set up a subsidiary Suli

Agricultural Technology (Philippines) Co., Ltd in the Philippines

to expand the market in Southeast Asia and strengthen the

registration of its overseas products

3 Hailir established branches in Brazil and the Philippines

to enrich the company's overseas sales channels and customer

resources

4 Rainbow invested in the EU agrochemical active

ingredient supply platform to accelerate its entry into the EU

market

5 Red Sun acquired 60% equity in Argentina's Ruralco;

6 Tide Group acquired 100% equity of Brazilian distributor

Prentiss Química;

7 ADAMA accepted the transfer of 50% equity of Shanghai

Dibai, Fenghui’s subsidiary;

8 ADAMA acquired French-Swiss plant protection company

SFP;

9 ADAM acquired 10% equity of Agricover, a Romanian

agricultural materials distributor;

10 ADAMA acquired Peruvian crop protection company

In summary, strict ecological and environmental management policies will become normalin China, and most companies have recognized this situation The reduction of the number of enterprises in the industry is an inevitable trend In the National Pesticide Management Working Conference held recently, the Ministry of Agriculture and Rural Affairs proposed that by 2025, more than 70% of chemical pesticide companies will settle in industrial parks and 100 large and medium-sized enterprise groups will be developed While the remaining enterprises are converging to the chemical park, they are also constantly improving their own production compliance levels Dominant companies continue to consolidate the development foundation by opening up the industrial chain, and presenting more possibilities

in trying various new business growth areas

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20

Market Overview

China Product Watch 2019:

Further raised registration thresholds, domestically-created products frequently emerging in terminal market

China has always been the backbone of global

pesticide production Even though China’s production

capacity has shrunk to some extent, due to the

increasing effects of environmental and safety policies

on the market in recent years, it still accounts for over

half of the global capacity In fact, China's domestic

pesticide market is huge and shows a more sustainable

development prospects with regards to the continuous

upgrading and adjustment of the pesticide industry in

recent years

Therefore, in addition to analysing pesticide exports,

an in-depth understanding of pesticide registration

trends and new product launchingin the Chinese market

also provides an important guide for understanding

product structures and how to seize opportunities in the

domestic market

By summarizing and analyzing data, such as the

number and variety of pesticides registered with the

Ministry of Agriculture and Rural Affairs of the People’s

Republic of China in 2019, as well as new product

launched in the market, this article will aim to conclude

that, with the future influence of policies and market

entities, highly-toxicity and high-risk pesticide varieties

are being rapidly eliminated, the pesticide registration

threshold is being raised, and pesticide products

are being rapidly developed in a safe, efficient, and

environmentally-friendly manner

The structure of pesticide products launched in

the market has been gradually optimized Although

homogeneous competition is still extensive, some

companies have begun to develop excellent proprietary

products, working with more diversified formulation types

for applications of off-patent products In general, innovation and creation are becoming the driving forces behind the sustainable development of these companies

Over the last decade, China's pesticide registration rate has shown a trend of steady growth From 2013 to 2018, the average annual growth rate

of pesticide registrations was 6.90% (Figure 1) In 2018, there were 4,608 pesticide registrations approved by the Ministry of Agriculture at an approval rate of 92.5% while the registration number increased by 8.6% over the previous year when there were 90 new pesticide registration tests approved,

at a rate of 51%

However, the increase in pesticide registrations in 2019 was significantly reduced compared to previous years The total number of pesticide registrations in 2019, as of 20th December, was only 1,064, of which 130 are technical concentrates and 934 are formulations The approval rate dropped sharply to 47.0% while the number of new pesticide registration tests was only 38, with the approval rate of 88.4%

As of 20th December, 2019, a total of 41,204 pesticide products were registered by the Ministry of Agriculture and Rural Affairs, of which 4,513 are technical concentrates and 36,691 are formulations The number of active ingredients of all registered pesticides is 701 The slowdown in registration growth is closely related to the rise in registration thresholds, under the new pesticide registration management regulations and changes to the safety and environmental protection standards covering the pesticide market

Figure 1 Total number of registered products during the validity period

By Mickey Shan

Editor of AgroPagesmickey@agroapges.com

Pesticide registration approval rate drops significantly in 2019

201105,00010,00015,00020,00025,00030,000 26,218 27,27329,737

31,813 34,315 35,604

38,247 41,518 41,20435,000

40,00045,000

2012 2013 2014 2015 2016 2017 2018 2019

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Market Overview

The three major categories of products registered in 2019

are still pesticides, fungicides and herbicides, with registration

numbers being 592 (55.64%), 179 (16.82%) and 110 (10.34%),

respectively The rest includes 66 acaricides, 33 hygienic

insecticides, 32 plant growth regulators, and 52 other products

(Figure 2)

Figure 2 Categories of registered products in 2019

As China has vigorously promoted the use of non-toxic

pesticides in recent years, pesticide registration has focused

low-toxic, green and environmentally friendly varieties, with

slight-toxicity and low-toxicity products accounting for 84% of

total Along with medium-toxicity products, they account for

99% of total while high-toxicity products only make up 1%

In 2019, among the registered insecticides, fungicides

and herbicides, the top ten includes several traditional

popular varieties, such as imidacloprid, pyrethroid pesticides,

carbendazim, glyphosate, and glufosinate-ammonium There

are also a few new hot products Among the registered

pesticides, imidacloprid is still the most registered, followed by

imidacloprid mixture products In addition, the registration of

thiosultap-monosodium, trichlorfon, and triazophos technical

concentrates is also common Among registered fungicides,

prothioconazole has emerged, along with carbendazim and

zineb In January 2019, prothioconazole was registered in

China for the first time and was ranked as one of the top

three technical concentrates during that year The top three

registered herbicide products are isoproturon, clomazone and

ioxynil octanoate The most registered compounded products

are a mixture of glyphosate and glufosinate ammonium

Tables 1, 2, and 3 highlight the list of registered insecticides,

fungicides and herbicides in 2019

InsecticideFungicideHerbicideAcaricideHygienic insecticidePlant Growth RegulatorOthers

23

34

45

56

67

78

89

910

Pyraclostrobin·EpoxiconazoleCypermethrin

Bupirimate

Triazophos

Hymexazol

cyfluthrin·Imidacloprid

Beta-Sulfur·TriadimefonTrichlorfon

ValifenalateTriazophos

Triadimefon

Phorate

Metconazole

Phoxim·Triazophos -

-Famoxadone·CyazofamidPyridaben

Melaleuca alternifolia

Thiosultap-Metconazole

monosodium

Thiosultap-Bupirimate

Beta-cyfluthrin·Phoxim

Metalaxyl-M·Fludioxonil

disodium

Thiosultap-Allyl isothiocyanate

Imidacloprid·Triazophos

M·Azoxystrobin

Metalaxyl-cypermethrin-

Alpha-CyflufenamidFluensulfone

Aluminium phosphide

Validamycin

monosodium

Imidacloprid·Thiosultap-Carbendazim·Triadimefon

Mixture

Table 1 Top 10 Insecticide active ingredient registrations in 2019

Table 2 Top 10 fungicide active ingredient registrations in 2019

Popular varieties are still welcome, overall

structure more environmentally-friendly

Trang 24

The annual registration of new pesticides always receives the attention of the market Although the total number of pesticide registrations declined in 2019, new pesticides registered for the first time have showed vitality According to incomplete statistics from AgroPages, a total of 26 pesticide ingredients were registered for the first time in China in 2019 (See Table 4), an increase of 62.5% over the 16 in 2018 that are mainly fungicides Among the new pesticide ingredients registered for the first time,

17 are owned by Chinese companies The number of first-time registrations by Chinese companies is increasing

Most active ingredients first registered by multinational companies are patented new compounds Relatively speaking, these ingredients are mainly fungicides with higher market profits

In the context of global registration and the market placement of these compounds, registration in China is necessary

Benzovindiflupyr 96% technical concentrate registered by Syngenta is one of the most promising SDHI fungicides, has a broad spectrum and is effective and long-lasting Foliar spraying

or soil treatment using benzovindiflupyr can prevent foliar and soil diseases in many crops, lawns, and flowers It has become Syngenta's best-selling fungicide, and its annual peak sales are expected to reach $1 billion

Japanese companies with a reputation for research and development have registered two new fungicides, penthiopyrad

octanoate isopropylammoniumGlyphosate- Metamifop·Cyhalofop-butylSimetryn Pinoxaden methyl·PretilachlorBensulfuron-

Glufosinate-Mixture

Table 3 Top 10 herbicide active ingredient registrations in 2019

Firstly-registered pesticides show vitality

Trang 25

Market Overview

99% technical concentrate and cyflufenamid 98%

Penthiopyrad was successfully developed by Mitsui

Chemicals and was jointly developed with multinational

companies, such as Corteva and Syngenta

Penthiopyrad is a SDHI fungicide, has broad spectrum

and is effective At present, penthiopyrad has become

one of Corteva’s key fungicides, with an annual peak

sale up to $100 million to $500 million

Fluensulfone 95% technical concentrate, Adama’s

new registered product, is a new broad-spectrum,

non-fumigant nematicide with a novel structure It

can prevent and control a variety of plant parasitic

nematodes and displays non-target low biological

toxicity It is a green alternative to many carbamates and

organophosphorus nematicides After its first registration

in China, the influence and market development

potential of fluensulfone are promising

Among the first-registered products of domestic

companies in 2019, some are reserved off-patent

technical concentrates, especially solutions for the most

pressing agriculture problems, including Shandong

Hailir’s prothioconazole 95% and Anhui Jiuyi’s

prothioconazole 97%, which control pests that threaten

current agricultural production

Prothioconazole’s patent in China expired in 2015

It is one of the top ten fungicides in the world, but has

not been registered since 2015 by domestic companies

In recent years, wheat scab, rust, powdery mildew

and other diseases broke out in China Resistance to

available formulations and other reasons resulted in

huge losses Prothioconazole can efficiently control the

above diseases and is environmentally-friendly, low

toxic and has little residue The domestic registration of

prothioconazole will, therefore, help broaden its global

market

Mites are recognized as hard-to-control pests, and

the continuous development of new effective acaricides

with unique mechanisms of action is an urgent matter for

agricultural production Nissan Chemical’s cyenopyrafen

95% was registered in China for the first time This

compound has a novel structure, and its t-butyl ester has

displayed considerable inhibitory effects on mitochondrial

respiratory chain complex II after hydrolysis It also has

no cross-resistance with existing acaricides and is safe

on non-target organisms, making it an ideal acaricide In

2016, sales of cyenopyrafen were close to $20 million

The general pesticide registration situation reflects

the industry's compliance with the concept of green

and sustainable development Pesticide registration in

China is now under structural optimization and quality

improvement The use of biological pesticides, such as

microbial, botanical, and biochemical pesticides, has

been steadily growing

Pentanoic phenol acid 25.1%、

Tridecan phenol acid 5.9%

Spirobudiclofen 95%

Tolfenpyrad 98%

STKAnhui JiuyiADAMASyngentaNantong HuashengJiangxi Heyi Shaanxi MeiBang GroupBeijing YagenongHailirHuifengIsagro Mitsui Chemicals AgroBelgium Bierqing Nippon Soda China Tongxiang Bio-Pesticide

Shanghai Qunli Liaoning CyndaLiaoning CyndaHuifeng

Jiangsu CorechemNanjing Baite Bio-engineering

Nissan

BASFXuzhou JindiUdragonQingdao Kaiyuanxiang

TKTCTCTCTCTCTKTKTCTCTCTCTCTCTK

TCTCTCTC

TKTK

TC

TCTKTCTC

Concentration Formulation Type Manufacturer

Fungicide

Herbicide

Plant Growth Regulator

Acaricide Insecticide

Table 4 Pesticide ingredients registered for the first time in China in 2019

Trang 26

24

Market Overview

Although the number of pesticide registrations fell sharply

in 2019, the market’s enthusiasm for new products continues to

increase In 2019, new product launch meetings and new product

promotion meetings held by companies across the country were

still increasing in number According to incomplete statistics from

AgroPages, the product launch/promotion meetings held by

multinational and domestic companies across China in 2019 as of

30th November are shown in Table 5 It can be seen that the major

products of domestic companies are still made up of vigorous old

products and sub-new compounds, but there are also some new

ingredients and new formulationtypes

Multinational companies have made their significant

innovations mainly in formulationtypes and applications based on

their own patented compounds In addition, they also cooperate

with domestic companies that specialize in regional markets in

licensing products

As the largest non-patented pesticide leader in China, Adama

has been exploring the market potential of off-patent pesticides

through product combination or innovation based on new product

development In 2019, Adama launched and promoted its latest

nematicides Nimitz® (fluensulfone), AGIL® (10% propaquizafop

EC), and Lingshan® (40% buprofezin SC) to the market

Nimitz® is a new generation nematicide developed by Adama

and has considerable expectations It has been registered and

sold in over 20 countries and regions around the world Due to

its low toxicity, high efficiency, long-lasting effect, environmental

friendliness, and ease of use, Nimitz® will help solve the bottleneck

and difficulty of controlling meloidogyne in vegetable production

Propaquizafop occupies an important position in Adama's product

line

The successful launch of AGIL®, whose active ingredient

is propaquizafop, marks the entry of Adama into the market

of herbicides that counter grass family weeds affecting

broad-leaved crop fields Launched by Adama, Lingshan® is a pesticide

suitable for aerial control Buprofezin is one of the most successful

insect growth regulators in the world and can effectively control

homoptera pests Through the formulation optimization by Adana’s

Nanjing R&D Center, the long-term effect and high selectivity of

buprofezin are further improved, resulting in its greater practicality

for aerial control and miscibility with other conventional pesticides

Corteva's Zorvec Enibel® is the first premix product in its

Zorvec® series The active ingredient of Zorvec® series is

oxathiapiprolin, the first piperidinyl thiazole isoxazolines fungicide

developed by Corteva With unique targets and novel mechanism

of action, the product has good control effect at extremely low

doses Famoxadone, the compounded ingredient of Zorvec

Enibel®, broadens its fungicide spectrum and can effectively

control late blight and early blight Zorvec Enibel® has a superior formulation type and can be easily used for aerial control

By cooperating with multinational giants to attain agency and development rights for internationally-patented compound products, domestic pesticide companies have continuously improved the level of their new products Biogen, a subsidiary company of Noposion, jointly developed and launched the bi-patented compound, Qintianzhu® (23% triflumezopyrim + cyantraniliprole SC), with Corteva The product is regarded as the "nuclear weapon" against resistant pest in rice fields The core ingredient of Qintianzhu® is triflumezopyrim developed

by DuPont, a cross-generation product with new structure and new mechanism of action It has no cross-resistance

to neonicotinoids and pymetrozines Cyantraniliprole is

a compound patented by FMC It is also an upgrade of chlorantraniliprole, has broader insecticidal spectrum, and can efficiently control rice stem borer and rice leaf roller

By leveraging channel advantages, Japanese companies also explored their patented products In 2019, Mitsui Chemicals licensed its patented compound, penthiopyrad, to Sino-Agri and Sipcam, to launch products under the names, Aifeite® and Kebina®, to markets in northern and southern China Penthiopyrad is aSDHI fungicide with permeable and systemic activities, which can provide preventive and therapeutic effects and has low cross-resistance to currently available fungicides It not only effective against diseases such as powdery mildew and gray mold, but it is also safe

to beneficial microorganisms and their natural enemies The above two products contain high-purity technical concentrates produced by Mitsui Chemicals and have scientific formulas, good miscibility, and are more stable and safer

Controlling major agricultural pests control is key to launching new products and it can bring better market profits for companies In 2019, with the first registration of prothioconazole in China, three companies launched four prothioconazole-based formulations to control wheat scab that seriously threatened China's wheat production in the past two years Anhui Jiuyi launched JiuYaoJiu (30% prothioconazole dispersible oil suspension concentrate), whose most important feature is that it can be sprayed at ultra-low dose using drones, as well as manually after diluting with water When sprayed at ultra-low dose using drones, JiuYaoJiu shows rapid sedimentation, high permeability, high droplet coverage, high pesticide availability, and good control effects It is also very environmentally-friendly

Hailir launched two prothioconazole-based mixture products, which are Lijian® (40% prothioconazole plus tebuconazole SC) and Liangjie® (28% prothioconazole plus carbendazim SC), to control major wheat diseases, such as wheat scab, rust and powdery mildew Lijian® has

a comprehensive mechanism of action, broad fungicidal

Newly launched products: further innovation

in application methods, frequent emergence of

domestic patent highlights

Trang 27

spectrum, strong systemicity, radical control effect, and term effectiveness, therefore, showing excellent prevention and control Liangjie® is also proven to achieve an optimal control effect and cost effectiveness through a reasonable ratio of prothioconazole and carbendazim The above two products are suitable for a variety of application equipment, such as large machinery for spraying and drones for aerial control.

Liyang Zhongnan also launched a product named

Lemaibao®, which is 40% prothioconazole plus tebuconazole

SC This product is supplemented with Liyang Zhongnan’s independent intellectual property product, which is a high-efficiency surfactant 9708 Its properties include strong adhesiveness, high permeability and resistance to rain erosion, which greatly increases the amount of target residual, extends the effective duration, and improves the control effect

As one of the most active companies engaged in pesticide creation in China in recent years, KingAgroot launched 11 new herbicides, including DaoGuYing®, DaoYu®, JingJie®, JinYuYing®, and JinWenYu®, based on its patented

compounds, such as tripyrasulfone( 三唑磺草酮 ) and

fenpyrazone( 苯唑氟草酮 ) in China in 2019 Tripyrasulfone is the world's first HPPD inhibitor that can be safely used for post-emergence control of grass weeds as stem and leaf treatment herbicide in paddy fields It can effectively control Echinocloa species that are resistant to ALS inhibitors and ACCase inhibitors, as well as Leptochloa chinensis, which is resistant to ACCase inhibitors, thus being of extraordinary significance for improving global rice yields Fenpyrazoneis the third-generation cornfield HPPD inhibitor herbicide Compared with previous generations of HPPD inhibitors, its herbicidal spectrum is more balanced and the control effect is more stable These products bring innovative solutions to farmers who suffer from resistant weeds With the vision of "reinventing herbicides again", KingAgroot will also launch six new patented compounds in the next five years

In addition to its three major plant protection products, Chengdu Kelilong has also launched a blockbuster plant growth regulator Through more than ten years of research and innovation, the company has developed the latest

generation compound with the global patent iron chlorin e6,

a pure natural substance extracted from silkworm excrement

It can improve photosynthetic efficiency, accumulate active photosynthate, promote crop growth and increase the biological yield of crops It can also improve resistance to cold, salinity and alkalinity resistance of crops by promoting the growth of roots, stems and leaves In 2019, FengCuiLu®, with this active, was introduced in the market This is the latest generation of botanical growth regulator in the Chinese market, indicating that China's agricultural chemical control technology has entered a new era

Trang 28

Prothioconazole+TebuconazoleOxathiapiprolin+FamoxadoneFluoxastrobin +TebuconazoleIsotianil+Trifloxystrobin

Pyraclostrobin+TetraconazoleFluxapyroxad+PyraclostrobinPydiflumetofen

Epoxiconazole +ValidamycinEpoxiconazole+Tricyclazole

Downy mildewDowny mildew, blight, late blightWheat scab, rust, powdery mildewHead blight,blight, rust,powdery mildew, root rotwheat scab

Wheat scab, powdery mildew, rustLate blight, early blight

Powdery mildewRice blast

Various powdery mildew pathogensNorthern corn leaf blight

Wheat scabRice sheath blight, false smutRice sheath blight, false smut, blast

Yanhua Yoloo Anhui Jiuyi

BASFSyngentaLier plant

Mid-South ChemicalCorteva

Emamectin benzoate+IndoxacarbEmamectin benzoate

Powdery mildew, grey mold

Striped rice borer, rice planthopper

Homoptera pests such as rice planthopper, whitefly, scale insect

Leaf fungal diseases such as powdery mildew,brown patch and alternaria leaf spot

Most fungal diseases

Rice leaf rollerRice leaf roller, striped rice borer

Sipcam+ Mitsui Chemicals

UPLBayer

Difficult diseases of field fruit and vegetable crops

Striped rice borer, rice leaf roller, rice planthopper

Piercing-sucking mouthpart pests such as aphids, scale insects, mealybugs, mites, thrips, woodlouse, and greenhouse whitefly

Piercing-sucking and rasping-suckingmouthpart pests such as rice planthopper, aphides, whitefly, tea lesser leafhopper, mired, thrips

Trang 29

Iron chlorin e6BrassinFluensulfone

Grassy weedsMany types of weedsMany types of weeds

Regulate plant growthRegulate plant growthNematode

Chengdu KelilongMindleaderADAMA

Isoxaflutole

PenoxsulamFenpyrazone( 苯唑氟草酮 )

Bio-stimulant, organic carbon

Organic matter, Bacillus amyloliquefaciens, potassium fulvate, etc

Leaf fungal diseases such as powdery mildew,brown patch and alternaria leaf spot

Barnyard grass, Leersia hexandra, resistant Euphorbia lathyris

Wheat diseases and pests

Citrus red mites

Annualgrass weeds and broadleaf weeds in corn fields

Paddybarnyard grassGrass weeds and broadleaf weeds

Wheat aphides, sheath blight, etc

Improve soil flora ecology

Peanut southern blight, aphides

Broadleaf weeds in wheat fields

Wheat field resistant and destructive weeds such as Beckmannia syzigachne, Alopecurus japonicus, amur foxtail, Aegilops tauschii

Pest mites such as citrus red mites, yellow mites, Tetranychus cinnabarinus, two-spotted spider mites

NematodeSoil fertilizers

Nematode

Kesaijinong Veyong

Jiangsu Polychem

Yanhua Yoloo

Shandong QiaochangChengdu Newsun

Guangdong ZhenGe

Shanghai Shengnong Shandong Sino-Agri United

wenlong®

Shanchun®

CycloxapridPyriproxyfen

Rice planthopperPnyxia scabiei HopkinsInsecticide

Trang 30

According to the National Bureau of Statistics, the national

yield of chemical pesticide reached 2.083 million tons in 2018,

down by 9.5% on a cumulative basis The national yield of

chemical pesticide increased to some extent in the first eleven

months of 2019, registered a total of 2.018 million tons from

January to November 2019 The annual yield in 2019 is most likely

to be equal to that in 2018, the probability of increase is less than

10%

In terms of pesticide export, this article uses the European

region as an example China exported a total of 149.46

KT pesticides to Europe from January to November, 2019,

representing 10% of China’s national pesticide export volume,

with the export value being USD 1314.42 million, representing

12% of China’s total The export volume increased by 2.8%, and

the export value increased by 10.93% on a year-on-year basis

Eastern Europe serves as a barn of the entire Europe, and its

pesticide demand dominates the European region 60% of the

149.46 KT pesticides that are exported from China to Europe

went to the Eastern European region (15 countries and regions

including Russia, Ukraine, Poland, Latvia, Belarus, Croatia,

Slovenia, Lithuania, Serbia, and Hungary), with the export value

accounting for only 30% of China’s export to Europe This article

analyzes China’s pesticide export to the Eastern European

market

From January to November 2019, China exported a total

of 90.19 KT pesticides (down by 1.2% YoY) worth USD 643.07

million (up by 1.1% YoY) to Eastern Europe Of this total, the

export value and volume of TC were USD383.01 million and 32.13

KT respectively, increasing by 9.41% and 3.94% YoY respectively;

the export value and volume of formulations were USD260.06

million and 58.06 KT respectively, decreasing by 9% and 3.79%

YoY respectively

The volume and value of China’s pesticide export to Eastern Europe were relatively steady The pesticide prices remained a higher level after a general rise in 2018

According to the data from January to November 2019, and

by referring to the trend of change in volume and value since

2017, the most steady market performance occurred in Russia and Poland In Russia, this was mainly attributed to the increase

in TC dominated by herbicides, including Glyphosate, p-ethyl and Metamitron TC In Poland, this was also mainly attributed to TC, mainly including Glyphosate, Azoxystrobin, Difenoconazole, Imazamox, and Nicosulfuron But there were also products indicating an obvious decline, such as Metazachlor and Quizalofop-p-ethyl These two countries took up 57% of the total value of China’s pesticide export to Eastern Europe

Quizalofop-Other countries showing an increase in both export volume and value include Latvia, Croatia and Serbia Latvia’s import increase was mainly attributed to the sugar beet herbicides such

as Desmedipham, Phenmedipham, Metamitron, Ethofumesate

TC, and Propiconazole TC Croatia’s import increase was mostly attributed to the Glyphosate TC and Chlorpyrifos TC, while the import volume of S-metolachlor TC decreased by 66%, making it a product with the greatest decline of export volume among the top

10 products exported from China to Croatia

Another country is Serbia, where many products were newly imported as compared with 2018 These products include Bentazone TC, Nicosulfuron TC, Fluazinam TC, Vondcaptan

TC, Pendimethalin TC, Azoxystrobin TC, Clomazone TC, and

Analysis of China’s Export to Eastern Europe from Jan to Nov 2019 (By country)

Trang 31

Market Overview

Glufosinate TC This indicates the potential of Serbia to become

a new highland for China’s export to Europe

Other countries showing a decline of export volume include Ukraine, Belarus, Slovenia, Lithuania and Hungary There was

a little change in Ukraine’s import from China, which declined

by 0.8% Ukraine witnessed the decline by 35.6%, which was mainly attributed to such TC as Glyphosate, Imidacloprid, Propiconazole, Epoxiconazole and Azoxystrobin However, there were also new imported TC products as compared with

2018, such as Thidiazuron, Quizalofop-p-ethyl, Fludioxonil, Trifloxystrobin, and Difenoconazole

In Slovenia, the volume of import from China was down by 54%, which was mainly attributed to the decrease of such TC

as Flufenacet, Tebuconazole, and S-metolachlor There were also some new products imported from China, for example, Prothioconazole, Epoxiconazole, and Cyproconazole TC Particularly, the import value of Prothioconazole was zero previously, and in 2019 it became a pesticide product second

to Flufenacet by the value of import from China, accounting for 15% of the country’s total import

In Lithuania, the volume of import from China was down by 11.85% from January to November 2019 as compared with the same period in the previous year, which was mainly attributed

to Glyphosate TC and 2,4-D TC New imported pesticides were Imidacloprid TC and formulation, Diquat dibromide SL, and Tebuconazole TC, etc

Finally, among the top 10 countries in Eastern Europe to which China’s pesticides are exported, the country with the greatest YoY rate of decline from 2018 was Hungary, whose import volume from China was down by 74.86%, and import value down by 61.82% Its import volume of Diquat dibromide

TK declined from 568 tons in 2018 to zero, that of Glyphosate

TC declined from 172 tons in 2018 to zero, and that of Propiconazole TC declined from 79 tons to zero And the import volume of Tebuconazole, Cyproconazole, Metribuzin and other products from China was also zero in 2019 However, there were also new products imported from China, such as Acetamiprid, Carbofuran, Clodinafop-propargyl, Cymoxanil, Flutriafol and other TC

Figure 3: Changes in China's total export value in 2017-2019

No Country (million USD) Export Value YoY % Export Volume (000 tons) YoY %

Table 1: Value and volume of China’s pesticide export to Eastern

European Destination Countries from Jan to Nov., 2019

Figure 1: Amounts of the pesticide imported from China by Eastern

Europe (By country)

Figure 2: Change in China's total export volume from 2017 to 2019

Trang 32

30

Market Overview

Analysis of China’s Top 20 products exported

to Eastern Europe

According to statistics, China exported 32.13KT TC worth

USD 383.01 million to the Eastern European region from January

to November, 2019 Among the TC, 55% was exported to Russia,

13% to Poland, 8% to Belarus, 7% to Latvia, 6% to Ukraine, 4% to

Slovenia, 2% to Croatia and Lithuania respectively, 1% to Serbia,

and 1% to Hungary

Of the total volume of TC, Glyphosate accounted for 10%,

followed by Tebuconazole, which accounted for 5% In addition,

( million USD) Amount of Exporter

10,322.351,614.781,083.61312.00409.94826.653,643.67641.20167.13175.66178.4578.2072.55400.35142.0068.06318.00210.21345.401,183.48

39.8031.0822.8914.7913.9512.5710.7110.288.828.638.308.127.677.387.297.107.066.676.315.78

Table 2: China’s Top20 TC exported to Eastern Europe in Jan.-Nov 2019 (ranking by amount)

there were other TC products with a soaring volume of import

by Eastern Europe, including Fenoxaprop-ethyl, ethyl, 2,4-D-2-ethylhexyl, Lambda-cyhalothrin, Thidiazuron, and Difenoconazole Products showing a decline and a greater rate of decline include Propiconazole, Metamitron and Diquat dibromide

Fenoxaprop-p-As compared with India’s export data, it is easy to find that many products, especially Propiconazole, experienced a rise in the export volume from India to Eastern Europe, which filled the space

of decline in China’s export volume Many insiders predicted that products that would pose a danger to China’s pesticides in the future include 2,4-D, Cyhalothrin and other products

Trang 33

2,4-D-2-ethylhexyl 453g/L + Florasulam 6g/L SE

Imidacloprid 350g/L SCTribenuron-methyl 75% WGImidacloprid 600g/L FSGlyphosate 30% SLGlyphosate-isopropylammonium 62% SLHaloxyfop-P-methyl 108g/L ECImidacloprid 15% + Beta-cyfluthrin 5% SCAzoxystrobin 250g/L SCClopyralid 75% SGTebuconazole 430g/L SCClethodim 240g/L ECQuizalofop-p-ethyl 5% ECNicosulfuron 40g/L OD

10,322.351,614.781,083.61312.00409.94826.653,643.67641.20167.13175.66178.4578.2072.55400.35142.0068.06318.00210.21345.401,183.48

39.8031.0822.8914.7913.9512.5710.7110.288.828.638.308.127.677.387.297.107.066.676.315.78

Table 3: China’s Top 20 formulations exported to Eastern Europe in Jan.-Nov 2019 (ranking by amount)

As for formulations, China exported a total of 58.06KT

pesticide formulations (down by 3.79% YoY) worth USD 260.06

million (down by 9% YoY) to Eastern Europe in January-November

2019 Of this total, 39% was exported to Russia, 45% to Ukraine,

5% to Latvia, 4% to Croatia, 3% to Poland, 2% to Serbia, and 1%

to Lithuania and Slovenia, respectively The export to Hungary

was very little, and further declined from 2018

China’s export of pesticide to the Eastern European region

was still dominated by TC As many local companies invested

more to their plants, the proportion of TC may further go up

Serbia is likely to become a new entrance to the European market

Furthermore, India is gradually seizing China’s cake in the trading

market Next, the author will provide a detailed analysis of India’s pesticide export Please stay tuned

AgroPages will further play a role of bridge connecting China and other countries, introduce superior products to overseas customers, and find out excellent local partners for Chinese enterprises If you are interested in Pesticide import and export report, please contact AgroPages via agropages@vip.163.com.

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32

Market Overview

The biggest challenges encountered in

purchasing from China in 2019

Compared to previous years, the explosion in Xiangshui

made the situation of Chinese procurement even worse

Almost all overseas buyers participating in the survey

mentioned product shortages, high prices, and delayed

shipments In addition, the lack of registration documents

and the stability of product quality are also one of the

issues raised The instability of international exchange

rates has also disrupted their financial expenditure balance

Some businesses have suffered severely

Respondent from East European (the following are

abbreviated as respondents' nationality/region): The main

challenges were: unpredictability of price trends, higher

price level for certain materials, such as cyproconazole,

azoxystrobin, tebuconazole, mefenpyr-diethyl,

tribenuron-methyl as well deficiency of several active ingredients

due to stop of the production: dimethoate, tribenuron,

clodinafop, triasulfuron, etc

Delays in shipping and even cancelling orders

have severely affected the business of some overseas

companies For example, an respondent from a

Vietnamese company mentioned that due to the sudden

shutdown of the factory, the order they signed could only

be cancelled The situation for a Russian company is even

worse

Changes in procurement requirements

Whether it is the European and American markets with

strict regulations, or some less-developed regions such as

Southeast Asia, finding new compounds that can replace

high-toxicity and high-risk pesticides has become a very

urgent need The requirements for glyphosate, paraquat,

carbofuran, chlorpyrifos, carbaryl, copper oxychloride will

be replacing by some new products, such as spirotetramat,

fluopyram and sulfaxaflor Some companies have put

forward need for specific pest control, and many of our

respondents have suggested that they want to find

bio-pesticide and bio-fertilizer suitable for organic farming

Some companies with certain strength began to focus on

the research and development of their own new products

Russian: No matter confirming order 3-4 months ahead with a 100%

delivery we faced significant delays in shipment As our company operates in Russia where agrarian season is just once a year in the very end such situation caused a big stock in our warehouses that we were late to sell in season time Stock means frozen money in cargo as

it led to the decrease in our purchase volumes for next 2020 year

South America: Today to achieve security in deliveries and competitive

prices, you must offer a volume and periodicity in the purchase This situation favors great players and complicates the smallest There are also mergers between Chinese companies and companies providing row materials and intermediaries have increased their strategic strength

Germany: The regulatory situation in EU is nightmarish, we must look

for more reliable options, for example substitutes for Neonics

Vietnam: Government banned Carbendazim, Chlorpyrifos ethyl,

Fipronil, 24D, Paraquat, Glyphosate Our business has been greatly affected We may use glufosinate as a new herbicide replacement

East Europe: Countries in the CIS region was not affected by this trend

as it happened in EU and the USA There are many active ingredients which are banned in EU, however are still used at Russia, Ukraine, and Kazakhstan We are looking for replacement of some neocotinoids like imidacloprid, thiametoxam and will replace it by acetamiprid

Russia: Our R&D department is already carrying studies for finding

efficient product substitutes of banned agrochemicals Recently our team managed to find bio-herbicide based on nonanoic acid Still for sure it's not a complete solution for ‘glyphosate problem’ that all world faces but still a small light in the end of dark tunnel At least for small private farms it can be used efficiently

Bangladesh: Banning or phasing-out of traditional agrochemicals will

affect future business We are looking for products to replace carbofuran against Rice Stem Borer, alternative to glyphosate and paraquate, and new insecticide molecules against borer pest/sucking pest

The Challenges And Opportunities of Purchasing from China in 2019

At the end of 2019, AgroPages conducted an Annual Survey to companies globally who had business with China The survey investigated the impact of China's pesticide production and export on their business, as well as the latest changes in procurement requirements

By Mickey Shan

Trang 35

Market Overview

The future trend of China's

pesticide industry in the eyes

of overseas buyers

There is consensus of some trends

in China's pesticide development In

the industry as a whole, consolidation

will continue, small scale manufacture

closing down, and some production

may be transferred to remote areas in

northwest China or directly to foreign

countries At the enterprise level, some

companies have stated that they will

put more investment in R & D on new

compounds Exports will gradually shift

from technicals to formulations

In terms of product availability and

its price, the unstable supply chains

and more cost on environmental

compliance will increase the price of

agrochemical in general More than

half of the respondents also expressed

pessimism

Some interviewees expressed

confidence in the future of pesticides

in China They believe that the

industry will gradually adjust itself,

represented by large enterprises More

companies will focus on developing

innovative products A Russian

respondent also predicted that Chinese

pesticide companies will enter the

Russian market more and occupy a

considerable market share

Philippine: If ever the supply will normalize, I don't think the price will go down Less

competition means they can control the market and thus the price will just plateau over time

South Africa: Agrochemical formulations supply will be a big challenge for the local

producers in China in near future Many of overseas customers already diverted their part of sourcing from China to India Even many China producers are showing very much interest

in come to India and investing with Agrochemicals producers in India now

Malaysia: Many of China manufacturers will divert their activities to other countries in

order to diversify the risk of solely produce in China Big customers would like to work with manufacturer with risk management option The cost of products will be increase due to high waste treatment cost Manufacturer will find way to improve their technical knowhow to invent the method that would not generate too much of waste that need to treat

Eastern European: The Chinese industry will slowly but surely adjust to the current

governmental situation Some larger and stronger companies will update their factories and restart the production Small enterprises which cannot resist the environmental and administrative pressure will be probably shutting down

Germany: Hopefully the situation will stabilize with upgraded manufacturing practices This

may take some time as the government is keen to ensure improved safety and environment

Estonia: Chinese companies will focus most innovative products.

Russia: I believe that in coming 5-7 years in Russia local generic companies will almost

disappear The more and large Chinese factories are starting to be interested in Russian market Some of them are even finishing their own registrations And this trend will only continue Within definite period of time this market will be divided between 3 strong groups

of companies that will have almost equal market shares: multinationals, local manufacturers and Chinese (probably Indian) factories

Trang 36

Jiangsu Province has been leading the

country in the pesticide sector—an important

branch of the fine chemical industry Northern

Jiangsu embraced the sector more than a decade

ago and built a group of chemical industry parks

with its low labor and environmental resource

costs and low policy thresholds, attracting a

great number of chemical projects from Southern

Jiangsu, Zhejiang Province and other regions

During the period from 2009 to 2017, the total

of the newly approved pesticide enterprises

in China was 155, and 26.4% of them are in

Jiangsu Province

Around the year 2014, the pesticide industry

started to be subject to frequent environmental

protection inspections due to its huge discharges

of waste water, waste gas and industrial residue

The survival of relevant enterprises was gravely

challenged Data showed that the output of

pesticide technicals in Jiangsu Province before

2017 accounted for more than 50% of the

national total and that of formulations, more

than 30% The former declined by more than

30% after 2017 Particularly, an explosion in

Xiangshui Chemical Park in Yancheng City,

Jiangsu Province in March 2019 became a

turning point downward for the chemical industry

in Jiangsu and even the whole country Following

this explosion, a number of chemical parks in

Northern Jiangsu were shut down completely

and instantly, and many chemical parks in

coastal provinces and cities were ordered to

suspend production for inspection These led

to a great shrinkage of the national output of

pesticides The overall development of the pesticide industry in China was also profoundly affected

Due to the policy pressure, the increasing costs in labor, construction, production and operation, as well as short supply of land and energy sources in the southeast coastal areas in recent years, plus the country's top-level design on reshaping the spatial pattern of industries, domestic pesticide enterprises began

to move to the northwest region characterized by less economic development pressure and lower labor costs A batch of enterprises started to shift their main operations to the new production bases they found in Inner Mongolia, Ningxia, Gansu and other regions a few years ago

People’s first impression of the Northwest China is inadequate water resources and chemical raw materials, and high transportation costs, etc., none of which is conducive to the development of the fine chemical industry However, it has a vast area, abundant environmental capacity, as well as rich land and energy resources, which are appealing to pesticide enterprises More importantly, a well-developed basic chemical industry chain has formed in the region Although the pesticide enterprises in the west region have not caught up with their peers in traditionally strong regions in terms of total production capacity, the supply pattern of many bulk pesticide technicals has changed So far, more than 50% of the clethodim capacity in China has been transferred to the northwest, along with 30% of triazole, 30% of mesotrione and about 20% of imidacloprid capacities, and about 20% of the glufosinate capacity is currently available in the northwest

In the paragraphs below are dialogues with leaders of several pesticide enterprises in Northwest China, including Qilu Pharmaceutical (Inner Mongolia) Co., Ltd that settled in Inner Mongolia 10 years ago, and three new arrivers: Inner Mongolia Zhonggao Chemicals Co., Ltd., Ningxia Yifan Biotechnology Co., Ltd and Ningxia Surongda Chemical Co., Ltd The following contents will provide

us an insight into the development of the parks in which these enterprises are located, their strategic plans, and how they resolve the disadvantages of the remote northwest region

Trang 37

Dialogue

Founded in 1992, Hohhot Economic and Technological

Development Zone is located on the outskirt of Hohhot, and consists of

Ruyi Industrial Park, Jinchuan Industrial Park and Shaerqin Industrial

Park As the capital of the autonomous region, Hohhot harbors 70%

of the college resources and more than 40% of the S&T resources in

Inner Mongolia, thus representing a high-tech and talent highland of

the region

In terms of natural resources, the Yellow River passes through the

city, with a flow path of 37.5 kilometers long The approved annual

water withdrawal is 501 million cubic meters; the city’s total installed

power capacity is 12,579,000 kilowatts Jungar Coalfield, which is 100

kilometers away from Hohhot, has a proven reserve of 54.4 billion tons

with an annual exploitation quantity of 100 million tons; Changqing

Oilfield has a proven oil reserve of more than 12 billion tons, and a

natural gas reserve of more than 15 trillion cubic meters, leaving a

large space for subsequent development of the development zone

As the core region of Large-scale Development of Western China,

Hohhot enjoys national preferential policies,—and has also introduced

many local policies and regulations The development zone has also

introduced favorable policies concerning electricity price and resource

allocation in light of its actual situations

Hohhot Economic and Technological Development Zone has by

far attracted more than 2,900 enterprises, including enterprises from

more than 10 countries and regions in Southeast Asia, Europe and

the United States, and 132 enterprises above designated size As of

August 2019, the total industrial output value of industrial enterprises

above designated size had reached14.023 billion yuan, with a

year-on-year growth rate of 6.67%

Established in 2009, Qilu Pharmaceutical (Inner Mongolia) Co., Ltd

is located in the south section of Jinchuan Industrial Park under Hohhot

Economic and Technological Development Zone As a large-scale

modern biopharmaceutical enterprise in China, the company has fixed

assets of 2 billion yuan, 1,300 employees (60% of whom have a college

degree or above), and takes a world leading position in terms of production scale Qilu Pharmaceutical ranked 57th in the list of "Top 100 Private Enterprises in Inner Mongolia 2019" released at the 3rd Mongolia Business Conference in Inner Mongolia Autonomous Region on September 18, 2019

According to its general manager Mr Xia of Qilu Pharmaceutical, the plant in Inner Mongolia covers an area of 600 acres, and mainly produces abamectin, with an annual production capacity of 3,000 tons The company has established a strict quality control system and been applying internal quality control standards higher than international level The abamectin fermentation workshop of Qilu Pharmaceutical is highly automated, containing 36 fermentation tanks

of 500 cubic meters Qilu Pharmaceutical has by far garnered 60% of the domestic market with its product abamectin, and has established business relationship with over 100 international companies in more than

20 countries and regions such as the United States, Europe, South America, and Southeast Asia, with the average growth rate of exports in the past three years exceeding 50%

With constant input in safety and environmental protection from project construction to production, the company has by far made a total investment of 400 million yuan in environmental protection to effectively treat and recycle sewage, solid wastes and solvents

Mr Xia said, the production plant in Inner Mongolia has spent 200 million yuan on the procurement of 117 sets of sprinklers, 11 plasma odor treatment devices and five ozone odor removal devices to improve odor treatment “We cooperate closely with well-known Chinese research institutes and universities

in researching advanced odor treatment techniques, and have installed 14 biological towers that utilize biological processes to remove odor, therefore, making a breakthrough in odor treatment Since 2018,

we have gradually installed 16 online monitors that can monitor organized discharges and unorganized discharges outside the plant’s boundaries around the clock”, he said

Next, the company plans to invest 3 billion yuan in Hulun Buir, Inner Mongolia to acquire 2,000 acres of land for production of abamectin series and spinosad

Mr Xia said that the company has achieved success

in the area of fermentation odor treatment, which paves the way for the long-term production and supply

of high-quality abamectin and spinosad

Qilu Pharmaceutical: Big investment in environmental

protection and proactive layout

Trang 38

36

Dialogue

Bayin Oboo Industrial Park in Wuhai, Inner Mongolia is located

in Alxa Economic Development Zone, Alxa League, Inner Mongolia

Autonomous Region This region enjoys unique geographical

advantage, with well-developed coal chemical industry and salt chemical

industry, adjacent to many chemical industrial parks in Shizuishan,

Ningdong, Wuhai, Erdos and other places and boasting a full range

of basic chemical raw materials There are more than 20 chemical

products produced here, occupying over 50% of the global market The

construction of Bayin Oboo Industrial Park was started in 2013, with the

planned control area of 70 square kilometers and coverage of 23.19

square kilometers As a key circular industrial park in the development

zone to optimize the structure of the secondary industry, this park

gives priority to the development of the fine chemical, power, building

materials and new energy industries It has by far become a main

battlefield to promote the high-quality development of Alxa's industrial

economy By the end of 2019, it has attracted a total of 32 enterprises,

including 20 enterprises that have had their projects put into production

and 12 enterprises whose projects are currently under construction,

and a new industry pattern dominated by the new materials, agricultural

and pharmaceutical intermediates and energy generation industries has

been basically formed

Zhongshan Group is one of the enterprises that rapidly moved to the

northwest in recent years In May 2019, it set out to establish a

wholly-owned subsidiary, Inner Mongolia Zhonggao Chemical Co., Ltd in Bayin

Oboo Industrial Park by actively engaging in project feasibility study,

seeking approvals from relevant authorities, project design, and other

first-phase preparations According to Li Dan, the Company Director,

Zhonggao has by far completed the infrastructure and equipment

installation for several leading core products in Phase 1 The project is

expected to be put into production in early March 2020

Mr Li said that the industrial agglomeration effect and low costs of

raw materials and energy makes the northwest an ideal site for chemical

plants Alxa has also introduced a series of preferential policies in terms

of tax, credit, technological innovation, talent introduction, and protection

of entrepreneurs' rights and interests, creating a favorable environment

for investment Taking the tax policies as an example, Mr Li said that

enterprises whose main business is in sectors covered by the Catalogue of Encouraged Industries in Western Regions and whose main business income accounts for more than 70% of the total corporate income in the current year may pay the corporate income tax based on the rate of 15% Enterprises may also enjoy a favorable tax rate with respect to the income from products produced using resources generated during the production process as the main raw materials, other than from products specified in the original design Other policy supports in terms of charges and service assurance, resource allocation, infrastructure, talent introduction and training, are also available

The main products of Zhonggao in the park are still the high efficient and environmentally friendly selective herbicides for which the company has a solid customer base and strong competitive strength, such as mesotrione and metamitron The approved scales

of corresponding products have reached the domestic leading level, such as mesotrione and metamitron, whose planned scales have reached 10,000 tons/year and 3,000 tons/year, respectively By taking adequate account of the availability of upstream and downstream products, their output and market demand, among others, the company has been gradually extending the upper and lower ends, and working to realize self-sufficiency in key intermediates not easily obtainable from nearby areas

With respect to the poor transportation conditions and high transportation costs and labor costs in the northwest, Mr Li said that the company will reduce the logistics costs through high-efficient distribution Engagement of a specialized third-party logistics company can shorten the en route time of goods and reduce the costs and losses of goods in the turnover process A third-party logistics company may also be used to directly supply goods to the immediate upstream customer to help realize zero inventory and reduce costs Moreover, large quantity non-hazardous substances may be transported via the northwest ports and railway, instead of highway

In terms of employment and talent team building, Zhonggao will adopt different recruitment strategies for different posts For example, for jobs directly related to production, relevant personnel will be recruited from nearby provinces where the chemical industry

is well developed, and jobs not closely related to production will

be outsourced At the same time, the human resources of the Zhongshan Group are fully unitized to recruit employees and provide pre-job training In addition, strategic cooperation is conducted with local vocational and technical colleges under the joint or directional training programs to provide blue-collar workers to the company so

as to ensure its sustainable development

According to Mr Li, after Phase 1 project was put into operation, Zhonggao will, in light of the registration of its products in the international market, produce more herbicide and fungicide varieties that have large market shares, strong life cycle, high technology-intensiveness and high added value, including pinoxaden and prothioconazole A good external environment is very important for the development of chemical enterprises There will be a new round

of development opportunities for high-quality enterprises possessing advanced technology and strong cost control capabilities

Zhonggao Chemical: A typical enterprise moving

fast to the northwest under the technical support

from the Group

Trang 39

Yifan Biotechnology, Surongda Chemical:

Be well prepared to gradually release

production capacity in 2020

Ningdong Energy and Chemical Industry Base is located

in the mid-east region of Ningxia With the total planned area

of 3484 square kilometers and the core area of 800 square

kilometers, it was recognized successively as a national

coal base with a handling capacity exceeding a hundred

million tons, a coal and electricity base exceeding ten million

kilowatts, a modern coal chemical industry demonstration

zone and a circular economy demonstration zone In 2019,

it was ranked 6th in the list of top 30 chemical industry parks

in China

Ningdong Chemical New Materials Park is one of the key

industrial parks under the Ningdong Energy and Chemical

Industry Base Construction Program With a planned area

of 22.04 square kilometers in total, it gives priority to the

development of modern coal chemical, fine chemical,

pharmaceutical chemical industries It has by far attracted

50 enterprises, involving 48 projects in 6 major industries,

including modern coal chemical, fine chemical and new

materials industries

Ningxia Yifan Biotechnology Co., Ltd., funded by Yifan

Biotechnology in 2018, is located in Ningdong Chemical

New Materials Park, with an average investment of 3.43

million yuan per mu and an output value of more than 3 billion According to

Wu Kechong, Board Chairman of Yifan Biotechnology, the production base

in Ningdong had gained all required approvals by May 2019 and is currently under construction The expected completion time is March 2020

Mr Wu said that the company's core products in the park are herbicides and fungicides, including clethodim (3,000 tons/ year), flumioxazin (500 tons/year), and bromacil (500 tons/ year) The products coming out later include oxyfluorfen, prothioconazole, metalaxyl, metalaxyl-M, difenoconazole and prochloraz The products to the developed in the next phase include herbicides, like pinoxaden, fomesafen and fluoroglycofen, and fungicides, like thiodiazole-copper, zinc thiazole, picoxystrobin, cyproconazole, and metconazole as well as insecticides like ethiprole and spirotetramat With respect to the flagship products, the company will strive to start with basic chemical raw materials and achieve self-sufficiency in intermediates, so as to

Trang 40

38

Dialogue

ensure sustained production capacity

Mr Wu believes that compared with the traditional coastal areas, the

remote northwest region has distinct production advantages In addition to the

well-developed basic chemical industry and the stable supply of energy and

raw materials, the park also has high standards and strict requirements for

safety and environmental protection These are conducive to the company's

long-term development and enhancement of its overall competitiveness It

is learned that a public power island is being constructed in the park, which,

upon completion, can provide centralized heating and gas supply A sewage

treatment plant can treat sewage in a collective manner, saving the initial

investment of enterprises in infrastructure So enterprises can directly set up

workshops in the park in a cost-effective way, without anything else to worry

out

As to the talent team building, Mr Wu said that the company has

established a sound training system, under which, all on-the-job employees

have to receive pre-job training in the production base in Jiangsu or Zhejiang

and has also developed a wealth of talent training routes and courses to

support self-development of employees and meet the need of the company

Ningxia Surongda Chemical Co., Ltd., funded by Jiangsu Sword

AgroChemicals Co., Ltd., is also located in Ningdong Energy and Chemical

Industry Base, and has completed the first phase of environmental assessment

and design, as well as the selection and ordering of some equipment The

construction of workshops, three waste treatment systems, and public works

are currently underway The facility installation in some workshops is expected

to start in May 2020 Zhang Zhixun, person in charge of the company, said that

all work is progressing smoothly, including negotiations with the government of

the park

Don't let the industrial transfer become

a mere "spatial transfer" of workshops and production lines

Mr Wu of Yifan Biotechnology believes that the production capacity transfer of agrochemical enterprises from the east to the west this time is different from that of last time, which was from areas with higher environmental protection requirements to areas with lower environmental protection requirements The transfer this time is from the east where the environmental carrying capacity has encountered bottlenecks and constraints to the west where the level of industrialization is low and the economy is to

be developed, which is a manifestation of the state’s will What the west needs is not more pesticide enterprises, but more concentrated production capacity and higher-level industries Despite of different regulatory means and effects, the environmental protection requirements and standards in the west and the east are the same Enterprises establishing plants in the west in an attempt

to illegally discharge wastes cannot achieve sustainable development and would pay high prices

As for whether the western and northeastern regions can take in the transferred production capacity, Mr Wu believes that this is a situation similar to what happened when the pesticide and chemical production capacity was transferred from Europe and the United States to China two decades ago At that time, China fell behind of the advanced countries in terms of quality of labor force, industrial development, management, supporting facilities and infrastructure Since joining the WTO, and thanks to a range of supporting policies and the demographic dividend, China has quickly taken in the chemical and pesticide production capacity transferred from Europe and the United States, giving full play to the advantages as a late comer Therefore, with the targeted supporting policies in place, the west and northeast will surely achieve sustainable development

To sum up, the northwestern region of China has abundant development resources and is capable of learning from the experience and lessons in extensive development of the eastern coastal areas, so it has a bright development prospect of the chemical industry When moving to the northwestern region, enterprises shall have a clear picture of the current situation of the industry They should know that the industrial transfer is not simply a "spatial transfer" of workshops and production lines, but presents an opportunity for structural adjustment, transformation and upgrading, and for achieving a "win-win" result between the place they move out and the place they move in, and between economic development and environmental protection

The core products of Surongda at present include fungicides tebuconazole,

cyproconazole, azoxystrobin, pyraclostrobin, triadimenol, paclobutrazol and

metconazole, herbicides metribuzin and bentazone, insecticides thiamethoxam

and proprietary products and multiple intermediate products The company will

also develop 3-trifluoropyrazole fungicides in the next phase

Mr Zhang pointed out that the transfer from the eastern coastal regions

to the west or inland actually places higher requirements on enterprises Most

of Surongda's products are made under the condition of recycling water and

zero discharge, instead of discharge to the sea The company will adopt the

wet oxidation technology to treat massive high-concentration wastewater

and MVR to treat salt-containing wastewater, and incinerators to treat

high-concentration wastewater and waste salt Multiple sets of RTO will also be

available for waste gas incineration The three wastes (waste gas, waste water

and industrial residue) will be collected and disposed separately, and operated

and utilized comprehensively to realize zero discharge

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