Mar. 26, 2015
Strategic planning of Adama in China
The Chinese agrochemical market is today estimated to be $5.8 billion and is expected to continue to grow and become no.1 in terms of market size.
We are looking to capture the opportunities through strategic integration in follow up our 2011 merger with China National Agrochemical Corporation(CNAC). One element of our strategy is to get access to products produced in China and also to improve the logistics worldwide. We are investing in China in building an operational hub including R&D and formulation centers in strategic locations. In 2015, we are opening the R&D center in Nanjing and are also building a formulation center in Huaian, China. The operational hub will benefit both the global and local market.
The second element of our strategy is that we are focusing on the Chinese market. Building on the expertise from Anpon and Sanonda as a platform, we will bring Adama’s industry knowledge, expertise and marketing tools. We are coming to China to share our capabilities and learn from people here, so we can provide tailor-made solutions that meet the needs of Chinese farmers.
Advantages of Adama in China
Adama is uniquely positioned to:
• Bring state-of-the-art global technology to China
• Capitalize on the industry’s next global growth engine
• Provide China with worldwide direct market access
The potential exists to create the largest and most competitive, differentiated, off-patent provider worldwide.
Operationally, Adama’s China presence creates major operational benefits for the company which in turn is expected to benefit farmers and farming. Since Adama will have more control over its production and supply chain, the company can supply products more quickly to growers, with better availability worldwide and a wider portfolio to deliver basic agrochemical products.
Brand planning of Adama following a series of acquisitions of companies under ChemChina
Adama has signed the agreement to acquire the Chinese businesses and is preparing to close this acquisition.
We currently envision that post acquisition, we will continue to use the Chinese entities' existing brands for selected products and to add them to the leading Adama products brand. It depends on the market positioning of these products, their value proposition and related brand perception.
Adama brand stands for an integrated global company, driven by its core purpose: Creating Simplicity in Agriculture which we plan to bring to the Chinese market.
Standards for choosing potential partners
Adama is actively exploring additional partnerships. We are looking for complementary product portfolios and industry expertise.
Strategic planning to keep the leading advantages, facing the challenges coming from competitors
We consider China as a key building block for our future growth. As a key region, Adama investing significantly in China. Of course we are also looking for new technologies and new formulations. Recently we launched Nimitz a new nematicide, a proprietary product from Adama. We are continuing to explore other opportunities.
The Company’s growth platform is built on a culture of innovation.
• A history of innovation has enabled the Company to evolve from a chemical company into a global provider of farmer-centric products and services.
• The Company is an integral part and beneficiary of Israeli global leadership in agro-technology.
• Israeli expertise, linked with ChemChina’s infrastructure, provides a continuation and strengthening of historic culture of industry innovation and leads to development a unique and differentiated product pipeline.
More from AgroNews
Subscribe to daily email alerts of AgroNews.