On September 23, Fengshan Group issued an announcement stating that the company’s board of directors has reviewed and approved the proposal to purchase land and invest in the construction of pesticide and fine chemical products in Xinqiao Park of Guang’an Economic and Technological Development Zone (“Guang’an Economic Development Zone”). .
It is reported that the above-mentioned project has a total budget of 1.63 billion yuan, which will be used for the construction of fine chemical products and pesticide intermediates production base. The newly acquired land will be 500 mu, which can produce about 100,000 various fine chemicals and pesticide intermediates per year. Tons, the estimated annual average sales income is 3 billion yuan, and the average annual total profit and tax is 400 million yuan.
Fengshan Group is mainly engaged in the research and development, production and sales of high-efficiency, low-toxicity, low-residue, environmentally friendly pesticide technicals, formulations and pesticide intermediates.
The construction of the production and construction project of pesticide technical intermediates is aimed at supporting the company's future overseas layout, ensuring the stability of technical production, and expanding the company's industrial chain advantages. The project will focus on the manufacturing of various pesticide intermediates, and the products cover the intermediates used in the company's main technical manufacturing.
The implementation of the project is conducive to the company's reduction of the external dependence on the original drug intermediates, effectively reducing the company's original drug production costs, and reducing the impact of market fluctuations on the company's original drug output. After the completion of this project, the company can produce large-scale production of important pesticide intermediates such as 2-chloronicotinic acid, pyrimidinamine, DHPPA, 4-chloro-3,5-dinitro-benzotrifluoride, etc., which can be fully satisfied after the project reaches production. The intermediate demand of the company's main technical products.
In addition to considering the upstream and downstream coordination of the industrial chain, the company also has a comprehensive plan for plant layout and production safety. It is reported that, affected by the Xiangshui explosion incident last year, the company's 6-month suspension of original drug production severely affected operations and profitability. Based on this, the company decided to build a new base in Sichuan, aiming to reduce the adverse effects caused by regional events and diversify the company's operating risks.
During the suspension of production in 2019, the company invested funds to improve environmental protection facilities, and successfully met the environmental protection requirements of the national and local governments for pesticide companies, becoming the first company in Yancheng to resume production. At present, the production of the company's trifluralin technical and quizalofop technical products have returned to normal, and the production capacity utilization rate has returned to a high level again, and the product was once in short supply. After the release of this new capacity, the company's supply capacity will be greatly improved to meet the market demand of downstream customers and terminal farmers.
Industry data shows that the development of my country's pesticide industry production capacity is divided into two stages:
Since 2010-2015, production has increased year by year, and reached its peak in 2015, with an output of approximately 3.744 million tons.
After that, with the country's gradual increase in the safety and environmental protection requirements of the pesticide industry, the output has a downward trend. By 2019, the output was about 2.254 million tons, a significant decline.
It is reported that with the development of my country's pesticide industry and the continuous implementation of various safety and environmental policies in the pesticide industry, the production capacity of domestic pesticide products has shown a stable trend. In terms of enterprises, backward small and medium-sized production capacities have gradually withdrawn, product concentration has gradually increased, and the decline in output is also the result of the pursuit of high-quality development in the pesticide industry.
With the increase of industrial concentration, the organizational structure and layout of my country's pesticide industry will be more optimized, the division of labor and cooperation will be more reasonable, and a group of industrial clusters and enterprise groups with core competitiveness will gradually form and become my country's pesticide industry. The leading force of my country has effectively improved the competitiveness of Chinese pesticide companies and industries in the global market
