Fengshan Group to build multiple pesticide intermediates production base to expand its industrial chain advantage

On September 23, Fengshan Group announced a plan to acquire land in China's Sichuan Guang'an Economic and Technological Development Zone Xinqiao Park for construction of a pesticide technical and fine chemicals project. The total investment of the project is Yuan1.63 billion, intended for the annual production of over 100,000 tons of a variety of fine chemicals and pesticide intermediates, with projected annual sales revenues of Yuan3 billion.

After completion of the project, the company will be capable of mass production of primary pesticide intermediates, such as 2-chloronicotinic acid, pyrimidine, DHPPA and 4-chloro-3, along with 5-dinitrobenzotrifluoride. Upon completion and operation, its output will meet its demand for intermediates, which will avoid cost increases or production reductions caused by seasonal factors. Meanwhile, the production of intermediates can effectively improve the company’s profitability and reduce the period of time consumed in the sourcing and purchasing of intermediates.

In 2017, the trifluralin and quizalofop-p-ethyl technical production capacity were running at 111% and 103% of the load of the plant; in 2018, the capacity running rate of trifluralin and quizalofop-p-ethyl technical was 96.3% and 76.3% respectively; in 2019, due to the impact of the Xiangshui "321" Incident, production was suspended for six months, resulting in a sharp decrease in production, in which the production capacity utilization rate of trifluralin technical and quizalofop-p-ethyl technical decreased significantly to 28.8% and 43.5%, respectively. With the recovery production in 2020, the capacity utilization rate returned to a higher level.