Guangzhou, Guangdong -- (SBWIRE) -- 01/18/2012 -- Top 10 events in Chinese herbicide industry during 2011 are listed in this article, according to CCM’s January Issue of Herbicides China News.
1. ChemChina purchased MAI successfully
On Oct. 17, 2011, ChemChina finished the acquisition of Makhteshim Agan Group (MAI) headquartered in Israel, the largest generic pesticide manufacturer in the world, with a knock-down price of USD2.4 billion. Now ChemChina and Koor Industries Ltd., MAI's former holder, own respectively 60% and 40% of MAI's share. As a result, according to the agreement of both sides, MAI changed from a joint-stock company into a wholly-stock company.
This is the largest multinational acquisition in Chinese agrochemical history, and it marks a high tide of Chinese agrochemical companies' expansion in overseas. Besides ChemChina, domestic companies have put great efforts into overseas business aggressively these years. For instance, Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng) announced a plan on Dec. 13, 2011 to invest in establishing a subsidiary in Los Angeles, the U.S. (Please view this issue about Jiangsu Huifeng's overseas expansion.)
2. New Pesticide Administrative Regulations come out
On the basis of the original edition promulgated in May 1997, new Pesticide Administrative Regulations in China is under revision by the Chinese government nowadays, and should be issued formally in 2012 in an estimate. Pesticide Administrative Regulations is an instrumental document in China about governmental management of pesticide industry, generally worked out and promulgated by the Chinese government.
According to the latest report, the relative governmental department has finished the collection of public comments about new regulations already since Aug. 31, 2011. Contributed by these public comments, the partial modification in the draft of new regulations is in process recently. In terms of the detailed changes. However, it is still undercover at present. (Herbicides China News 1111)
As for the draft of new regulations, lots of different understanding in the public has been aroused, and the points are now summarized as bellow:
1. The entry barrier of pesticide industry in China will be heightened in the new regulation.
2. Quality demand of pesticide production in China is urged.
3. Sales permission of pesticide products in China will be re-executed.
4. Pesticide application in China will be standardized.
5. Governmental supervision of pesticide industry in China should be reinforced.
3. Herbicides witnessed price uptrend on the whole
On the basis of CCM International's price monitoring, it's learnt that the price of herbicides in China witnessed uptrend in 2011 due to the soaring cost resulted from the inflation in China. In the meantime, impacted by expensive materials, manufacturers restrict some herbicide production so that the supply shortage of herbicides in peak season of 2011 appeared frequently. (Please view Herbicides China News 1103, 1104, 1105, 1111 and 1112, etc.)
4. Nanjing Redsun finished the assets reorganization
Based on the conditional approval for assets reorganization between Nanjing Redsun Co., Ltd. (Nanjing Redsun) and Nanjing First Pesticide Group (NFP), Nanjing Redsun won China Securities Regulatory Commission (CSRC)'s complete approval on July 29, 2011. In the meantime, NFP also gained CSRC's approval to be exempted from obligation of tender offer in the assets reorganization.
As the reorganization witnessed the end, Nanjing Redsun Co., Ltd. modified its business registration——"export business of merchants and technologies" was added. As a result, nowadays, Nanjing Redsun's businesses include manufacture, sales, technology consultancy and service of pesticides, intermediates, fine chemicals and fertilizers as well as package business. (Relative information about the reorganization was mentioned in Herbicides China News 1108: Nanjing Redsun wins approval for asset reorganization)
5. Worries about paraquat was aroused
Worries about paraquat prospect was aroused again in Chinese herbicide market in 2011 after 200g/L SL was proposed to be listed in the Rotterdam Convention (Convention on International Prior Informed Consent Procedure for Certain Trade Hazardous Chemicals and Pesticides in International Trade Rotterdam, PIC) in March 2011.
Although the proposal for listing paraquat 200g/L SL in PIC has not come into effect in the world up to now, which will be checked in 2013 Conference of the Parties, there are lots of rumours in the air. A large number of people worry that Chinese paraquat will fade probably, if it is listed in PIC. (Herbicides China News 1109)
6. Lier Chemical purchased Jiangsu Kuaida
On Dec. 30, 2010, Lier Chemical Co., Ltd. (Lier Chemical) claimed that China Securities Regulatory Commission (CSRC) had approved the acquisition of Jiangsu Kuaida Agrochemical Co., Ltd. (Jiangsu Kuaida)'s over 64 million shares with per share price of USD0.39. It's the last administrative procedure for the acquisition of the Chinese government, indicating that Lier Chemical could complete the acquisition immediately, one of the remarkable examples in industrial integration of Chinese pesticides (Herbicides China News 1101). Now the acquisition has been finished already.
7. Huapont acquired Nutrichem
Through careful examination and discussion, it's announced by Chongqing Huapont Pharmaceutical Co., Ltd. (Huapont) finally that the company's acquisition of Nutrichem Company Limited (Nutrichem) gained CSRC's formal approval on Sept. 30, 2011. By issuing new 35,493,000 shares with unit price of USD3.69/share (RMB23.86/share) to Nutrichem, Huapont took over Nutrichem wholly by the end of 2011, and relative administrative procedures have also been finished already. (Herbicides China News 1107: Huapont acquires Nutrichem)
As a leading listed company who is mostly good at technology research and authentication, Nutrichem owns the first GLP laboratory in China. Among all subsidiaries of Nutrichem, Shangyu Yingtai Fine Chemical Co., Ltd. and Hebei Wanquan Lihua Chemicals Co., Ltd., whose businesses cover production and sales of pesticide and materials are the outstanding agrochemical companies in China.
8. Fuhua Tongda launched 50,000t/a glyphosate capacity
Contributed by the second stage glyphosate project done acceptance check formally in March 2011, Fuhua Tongda Agro-chemical Technology Co., Ltd. (Fuhua Tongda) was listed formally as the Chinese No. 2 glyphosate manufacturer with glyphosate technical capacity of 70,000t/a, tying with Anhui Huaxing Chemical Industry Co., Ltd. and Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. for the second rank in China. However, as for current glyphosate industry in China, Fuhua Tongda's new glyphosate capacity is surplus for Chinese market due to the overcapacity in market situation.
9. Shandong Dacheng and Huayang Technology were acquired by the mining companies
In 2011, two agrochemical companies, namely Shandong Dacheng Pesticide Co., Ltd. (Shandong Dacheng) and Shandong Huayang Technology Co., Ltd. (Huayang Technology), were acquired by two mining companies respectively, Shandong Hualian Mining Co., Ltd. (Shandong Hualian) and Zibo Hongda Mining Industry Co., Ltd. (Hongda Mining). It can be observed currently that two acquired companies are changing their pesticide business targets, implying that weak productivities are being swept from Chinese pesticide market gradually. (Herbicides China News 1102 and 1108)
10. Agrochemical companies march into new industries
While weak Chinese companies were forced to remove pesticide from their focuses, in 2011, some agrochemical companies in China try to explore new business in other industries. Thaihot Group Co., Ltd. (Thaihot Group, Fujian Sannong previously) is turning the original aim at weak pesticide business towards fluorinated-chemicals industry now. Coincidentally, Lianhe Chemical Technology Co., Ltd. (Lianhe Technology) with outstanding performance also aims at fluorine chemicals in an attempt at further development, by investing in Liaoning Tianyu Chemical Co., Ltd. (Tianyu Chemical). (Herbicides China News 1110 and 1112)
In fact, the trend that agrochemical companies march into new industries is growing up in China. Currently, for example, Hebei Veyong Bio-Chemical Co., Ltd. plans to explore coal business and Jiangsu Yangnong Chemical Co., Ltd. aims at new chemical materials.
Source: Herbicides China News 1201
http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html
Content of Herbicides China News 1201:
Top 10 events of Chinese herbicide industry in 2011
Six factors impacts on Chinese herbicide in 2011
Jiangsu Huifeng pushes overseas business 2
Explosive growth expected in Sanonda in 2011
Jiangsu Tenglong herbicide meets cooldown
Noposion should shine in 2011
Fluorine: Hotspot in pesticide industry
Only two 2,4-D registrations increased in 2011
Australian registrations of seven Chinese herbicides in 2011
Restriction in Australia may repress diuron export in China
Metamitron to remain export-oriented in 2012
Jiangsu Sword restarts bentazone production
The launch of Jiangsu Changqing's nicosulfuron behind schedule
Herbicide price stable in Jan. 2012
Herbicides China News, a monthly publication issued by CCM International on 15th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.
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