Sumitomo ratchets up global agrochemical expansion

Sumitomo Chemical, which has a sales goal of 270 bn yen ($3.2 bn) in fiscal 2012 for its business in agricultural chemicals, up from 210 bn yen in fiscal 2009, has taken two steps toward the business’ global development, concluding a toll-manufacturing agreement with Australia’s Nufarm Ltd and acquiring 100% ownership of New Chemi Industries, a Mumbai-based agrochemical manufacturer, to expand its crop-protection operations in India.

Nufarm will formulate and package, for distribution by Sumitomo, six if Sumitomo’s proprietary products, including its Admiral insect-growth regulator for cotton plants and orchard trees, Shield systemic insecticide for cotton plants, and Sumi-Alpha Felx for cotton plants and gardening. The process will be conducted by Sumitomo.

The two companies are also in discussions regarding collaboration on Sumitomo’s seed-protection platform in Australia and New Zealand, and on starting in 2011 the development of mixed preparation of their active ingredients.

New Chemi, established in 1961, has 113 employees and posted sales of 1.4 bn yen in fiscal 2009. It has a large portfolio of crop-protection products, chiefly generics, which will complement Sumitomo’s existing products sold in India. Sumitomo is considering merging New Chemi with its other local subsidiary SC Enviro Agro India in the future to streamline the business.