Interview with Kwin Group: Adversity reveals genius —— survival wisdom of enterprises

Agropages’editor Christina interviewed with Mr. Wu Wei, General Manager of Kwin Group, at the beginning of the year 2010. Mr. Wu stated his view on Kwin’s operating conditions in 2009, Chinese agrochemical market’s outlook and HES.

Christina（Editor of Agropages）: HSE (Health, Safety and Environment) is a concept focused by current pesticide cycle. As a renowned agrochemical enterprise in China, whats your companys opinion about HSE? And how do you implement this concept in the process of management and operation of your company?

Wu Wei (General Manager of Kwin Group): It is the basic of living for agrochemical enterprises to stick to HSE, and it is related to living environment and food security of human beings.

Kwin Group has been practicing “responsible care” for years; we stand at the position of being responsible for environment, consumers and offspring, promote green development through actual actions of “Protecting green and loving health” and pursue high unification of economic benefit, environmental benefit and social benefit. Firstly, we attach importance to optimizing production environment of green development, and manufacturing base of the company has been constructed into a garden-type factory. Secondly, we enhance radical measures for green development for the sources, our company sticks to integration of production, academy and research, our technical toxicants and their preparation products in market are all listed as recommended harmless pesticides by State Ministry of Agriculture. Thirdly, we develop circular economy actively, our company makes great achievements in energy-saving and drainage-reducing, and keep in line with international management system, we successfully passed authentications of “three standards and one integration” including ISO9001 quality, ISO14001 environment and OHSAS18001 professional health and safety management system firstly in our industry, and various management levels are improved constantly. Our company has been listed among “National quality management advanced enterprises, national key high-tech enterprises, the 500 strongest enterprises of scientific and technical brands in China, the 10 best patent enterprises in China, national chemical industry advanced enterprises, national obeying contract and regarding credit enterprises, and Chinese Pesticide Industry AAA level qualification enterprises". Kwin Brand was evaluated as a renowned Chinese brand in 2004, and our Imidacloprid serial products were evaluated as Chinese famous brand products in 2006.

Christina: How about the achievement of your company in 2009? How do you view the status quo of depressed global agrochemical industry?

Wu: In face of severe situation in 2009 when international financial crisis impacted seriously agrochemical markets, Kwin Group enhanced confidence to conquer difficulties and transfer crisis into opportunities; we cultivated new competitive advantages and won five achievements of growth of “operation performance, market share, contributions to state, income of employees, and development aftereffect.

In the last year, global agrochemical markets were depressed, and product prices decreased continuously. But depressed markets were relative, and brand products of brand enterprises could still keep high market share. Kwin Groups international and domestic trade volume in the last year kept increase of double figures; and high-efficiency, low-toxicity, safe and environment protective new products were more favored by markets. Our practices told us: the markets are always testing abilities and intelligence of enterprisers; and by mastering and following market rules, conforming to the situation and facing in a scientific way, agrochemical enterprises can still make achievements in depressed markets.

Christina: What’s your expectation of Chinese agrochemical market in 2010?

Wu: Good signs have appeared in world economy in 2010, but recovery is still very hard. Chinese economy is becoming stable and getting warmer, with strong trend of growth, but is still in face of various unstable elements. Meanwhile, we should see that: economic crisis does not change the trend of economic globalization, and Chinas steps of taking part in world economy is not thus changed, the trend of more demands for foods in future is not changed, and nor is China’s position as a large country of pesticide production in world agrochemical industry. Rigid demands for pesticides in the world will still bring opportunities of improvement and development to Chinese agrochemical industry. And Chinese serial preferential policies for agriculture have provided stable market space for agrochemical products. Therefore, agrochemical markets are expected to be boosted further in the new year.

Christina: In the process of development and “re-balance” of Chinese agrochemical industry, do you think this situation will be formed: industrial structure is reconstructed and small and medium enterprises are eliminated? How will the governmental industrial policies affect them?

Wu: At present, global financial crisis and environmental crisis are hastening rapid rising of green economy urgently. Green economy requires agrochemical industry to transform means of development and adjust industrial structure. However, owing to overextension of Chinese agrochemical industry, structural unbalance and surplus production and other contradictions are becoming severer and severer. In recent two years, our country is taking a series of measures to promote emergence of agrochemical industry. We believe that under guidance of state policies of agrochemical industry, the fittest will survive, the industry will be integrated rapidly, and will develop in a concentrated way and be improved comprehensively, and new viability will emerge gradually. But Chinese agrochemical industry is facing problems of small amount, little scale, low capacity of creation and serious product homogeneity, and concentrated development has not been influential, small and medium enterprises’ impulse of pursuing profits for survival will still affect regulations of markets, and “inertia” of homogeneous competition of agrochemical products will continue; therefore, development frame of agrochemical industrial cluster is still to be formed, and some small and medium enterprises will be eliminated slowly.

Christina: Please introduce the development strategy of your company briefly.

Wu: Kwin Group has always been adhering to development concepts of “selfless devotion to agriculture and winning by quality”; and we energetically implement development strategy of “Establishment of enterprise brand, high-end innovation, refocusing marketing, fine management and group development”. Establishment of enterprise brand means to set up all-round linkage system and guarantee system for establishing brand, activate employees to practice famous brand strategy with feet on the ground, make great efforts to create independent brand, guide markets, sales and green development of agriculture, and make enterprise brand and product brands become leading brands of the industry together. High-end innovation is to give prominence to technical supports, deepen self research and development, create patent industrial cluster, break through imitation and achieve creation, improve development level, and promote industrial upgrading. Refocusing marketing means through core products of core industry of the group corporation, to attract and support core customers from core areas, construct new network channels together, concentrate powers, activate terminals, expand coverage rate of product markets, and achieve maximization of market share, customer value and brand influential force. Fine management means to implement excellent performance management mode energetically, integrate resources and elements of the enterprise in a scientific way, increase efficiency constantly and create benefits. Group development is: while improving major industry of pesticides confirmedly, to develop related industry stably, achieve mutual promotion between major and auxiliary industry, balanced development and comprehensive improvement, and to let Kwin step into expressway of becoming larger and stronger and scientific development.

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