Dec. 26, 2017
Adama will invest up to US$ 50 million to build four new factories in Brazil in the cities of Londrina, state of Parana, and Taquari in Rio Grande do Sul, where the company already has units.
The aim is to produce five active ingredients by 2021 and grow by some 10%, compared to the previous year, when the company’s revenues reached US$ 480 million.
Rodrigo Gutierrez, president of Adama in Brazil, said that the variation in the investment capital was due to the procedures needed for the release of molecules by the regulatory authorities. “This investment will occur, but will be done according to the release, the bureaucracy, which all depends on several regulating agencies.” Gutierrez is betting on a high rate of product innovation to grow.
The annual investment in research and development has been constant in all of the company's factories, according to Gutierrez. In Brazil, this investment is around US$ 8 million per year. “The intention is to grow every year, around 5% to 10%, with a high rate of product innovation,” he noted.
After betting on new products, Gutierrez denied the possibility of investments in biological agents, in the short-term. “It is a sector that we will act on in the mid-term, mostly with ‘dead’ biological agents (extracts). For now, we will focus on the correct application of conventional products and a smarter use of chemical pesticides,” he emphasized.
“It is a very favorable moment for us, a Chinese company that has factories outside of China. The Chinese government realized that it was not possible to produce pesticides that were less harmful to the environment, and the factories reduced production, forced by the government to meet the environmental norms. The ones who have factories outside of China are at an advantage,” he noted.