China to reduce 30% pesticide companies by 2015

Recently, the Ministry of Information and Industry (MIIT ), Chinese Ministry of Environmental Protection and two other ministries jointly issued “ China Pesticide Industrial Policy”, which claims to reduce 30% pesticide companies  by 2015, and expand top 20 Chinese pesticide companies’ sales to 50% of total domestic sale by 2015, and 70% by 2020.

It is reported that there are problems of redundant construction, overcapacity, acute structural imbalance and chaotic management existed among the industry, which seriously affected the development of the industry. Therefore, the four ministries will raise the industrial concentration by promoting consolidation among the industries, as well as advocating the collaborations among the industrial chains. Besides, they will also boost the reasonable transformation of intangible assets like intellectual properties and registration information.

Aimed at reducing point source pollution, the new policy’s requirement of accelerating relocations to the industrial parks will increasing 50% pesticides manufacturer operating in these industrial zones by 2015, and 70% by 2020.

The industry insides, the pesticide companies already located in the industrial zones, like Yangnong(600486.SS), Wynca(600596.SS ), lierchem (002258.SZ)and Shandong Dacheng (600882.SS)will occupy the initiatives to enlarge by this new policy.

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