Limin Chemical’s annual 5,000-ton glufosinate project to be brought on stream by end of third quarter

On February 22, Limin Chemical answered queries from 11 institutions that included security traders and foundations on its investor relation activities, covering the progress of new projects. 

Q: Please brief us on the progress of the glufosinate project. 

A: The annual 5,000-ton glufosinate project is scheduled for completion and operation by the end of the third quarter of 2022.

Q: Please brief us on the downstream market of phosethyl-Al. 

A: Phosethyl-Al production is an extension of our dominant product, which is currently running at full load, with a stable profit margin. In the past, the product was used for sterilizing wine grapes. It is safe, environment-friendly and free of residues. In recent years, multinationals discovered a new area of its application, such as use in premium cash crops, including avocado, which has resulted in a much-increased market demand. Moreover, the overseas production lines of multinationals have been shut down, and production capacity has been transferred to China. We are the largest Chinese domestic manufacturer of the product.

Q: Please brief us on the output of your major products.

A: At present, we have three major product categories: agricultural insecticides, agricultural herbicides and agricultural fungicides, and veterinary drugs. 

The insecticide series include the annual 500-ton avermectin and 800-ton emamectin benzoate. We currently have only 5,500 cubic meters of fermentation capacity, but this will be doubled after completing the spinosad project in Inner Mongolia. Higher profitability is foreseeable. 

The herbicide series include the annual 1,500-ton glufosinate project and a 5,000-ton glufosinate project, expected to be completed and put into operation by the end of the third quarter of 2022. The production capacity of glufosinate will eventually reach annual 6,500 tons after completion and once it begins to function at full capacity.

The fungicide series include the annual 45,000-ton mancozeb, 2,000-ton cymoxanil, 5,000-ton phosethyl-Al and an annual 12,000-ton phosethyl-Al, expected to be completed and put into operation by the end of the first quarter of 2022. The production capacity of phosethyl-Al will eventually reach annual 17,000 tons after its completion and once it begins to function at full capacity.

Q: How is the progress of the spinosad project in Inner Mongolia and its market demand? 

A: Spinosad is a novel insecticide based on biological fermentation, which is obviously an environment-friendly product, particularly low toxic to aquatic organisms. The average selling price is Yuan200-300 million per ton, which generates a high profit level.

We have gained apparent technical strength after more than 10 years of technical advancement in biological fermentation. Our company is speeding up the process of development of spinosad, which is in line with the company’s future business strategy. The production will start next year.

Limin Chemical is engaged in research, development, production and sales of pesticides, veterinary drugs and formulations. Product portfolio includes agricultural fungicides, insecticides, herbicides and veterinary crude drugs, powder, premix and water injections. The territory of trade covers more than 70 countries and regions around the world, including China. We are one of the primary pesticide manufacturers in China, playing an important role in biological insecticide production, with top sales at home and abroad.