Hunan Haili – Three Bases Develop In A Coordinated Way to Strengthen, Optimize and Expand Agrochemicals, New Materials and Seed Industry

Mr. Liu Weidong, Chairman of Hunan Haili Chemical Industry Co.,Ltd.

Hunan Haili Chemical Industry Co.,Ltd. (Hunan Haili) has been established for 28 years and has made outstanding contributions to the development of pesticides in China, especially carbamate products. Liu Weidong, Chairman of Hunan Haili, shared with AgroPages in an interview about Haili's development history, industrial upgrading, product layout, technological innovation, social contribution, etc., and discussed the next development ideas and the role positioning in the industry for the future.

Liu Weidong (Postdoctor, researcher) has won 1 second prize of National Science and Technology Progress Award, 3 first prizes of Provincial and Ministerial Science and Technology Progress Award, an expert enjoying special government allowances from the State Council, and a national candidate for the New Century Million Talent Project. 

As a leading carbamate insecticide manufacturer, please give a briefing of Hunan Haili’s development history and the market position of your pesticide products, including your industry chain status.

Hunan Haili Chemical Industry Co.,Ltd. (Hunan Haili) was established and developed at the Hunan Chemical Research Institute, which was founded in 1951, with a history extending back more than 70 years. Currently, Hunan Haili operates three principal businesses, which are its agrochemical industry business, its new chemical materials business, and its seed industry business. As Hunan Haili originated from the Hunan Chemical Research Institute, it has strengths in research and innovation. Hunan Haili is an innovative and high-tech national enterprise that offer advantages in intellectual property development. Hunan Haili currently has five national R&D platforms and a postdoctoral center, being a leading global carbamate pesticide manufacturer. Hunan Haili has become a nationally known brand famous for its carbamate, which is its flagship product that offers the following advantages:

1) Our cutting-edge technological capacities, which began decades ago and have been advancing constantly. Currently, all other carbamate pesticide technologies in China originated from the Hunan Chemical Research Institute, so offer advantages related to this technology.

2) Hunan Haili’s industry chain is complete, covering intermediates and various pesticide varieties.

3) We have the world’s largest Carbamate pesticide product capacity.

4) We have an advanced equipment system, including the DCS system and SIS system, which are our safeguards for work safety and environmental compliance.

Can you please tell us about Hunan Haili’s progress in terms of investments, upgrades and industrial transfers over recent years? What measures must to take to ensure the stable long-term supply of quality products?

At present, we operate three main businesses, which are agrochemicals, new chemical materials and the seed industry. In terms of agrochemicals, our idea is to improve quality and increase quantity. Taking carbosulfan as an example, the content of the product has increased from 90% to 98% while impurities were greatly reduced. This fact is well recognized by global customers. In addition, we have maintained reserves of novel products and innovative technologies, such as pyraclostrobin and sulfentrazone. In terms of new chemical materials, backed by our expertise in phosgene, we have developed a series of phosgene-based downstream products and have developed battery energy storage technologies. We acquired Haili Lithium Technology Co., Ltd., which is now our holding subsidiary. In terms of the seed industry, we acquired Xingshu Seed Industry Co., Ltd., which is also now our wholly-owned subsidiary. Regarding chili seeds and vegetable seeds, we offer technical advantages and have a strong market position in China.

To ensure the long-term and stable supply of our products to our customers, we have optimized our business deployment model. We built a new factory in Ningxia, as well as a new plant in Jiangxi after the closure of our old factory, and we are presently planning  a newbuild factory in Yongxing, Chenzhou. In the future, three production bases for agrochemicals and new chemical materials will be constructed in the provinces of Hunan, Jiangxi and Ningxia. This level of production distribution will help ensure a stable product supply with product quality through effective management, supported by senior staff.

It is known that Hunan Haili specializes in pirimiphos-methyl. How do you position this product? And what are your plans to maintain the completeness of your industrial chain and your leading market position?

Pirimiphos-methyl is our leading product and is our focus of future development. Currently, Hunan Haili is the only manufacturer of pirimiphos-methyl in China, and we are also the world’s largest supplier of pirimiphos-methyl. Hunan Haili has produced pirimiphos-methyl for more than 20 years. By continually optimizing our process, our product quality has significantly improved, with content increasing from 90% to the current 98%, while trace impurities have been reduced, so our products are highly regarded by overseas customers. In May, we started the construction of a new 3,000-ton pirimiphos-methyl plant in Guixi. So far, civil works are progressing smoothly while equipment have been delivered for installation. The new plant is expected to begin production in 2023.

Concerning the industry chain of pirimiphos-methyl, we have prioritized the development of the industry chain. It is worthy of note that we produce our own intermediate, ancymidol, and we have also established good relationship with the suppliers of the raw material of the intermediate. In terms of marketing, we are advancing in the domestic market and international market in parallel. For the domestic market, we are targeting grain storage and developed different type of products applied to grain protection in large state-owned grain depots. For the overseas market, we are utilizing the sales channels of multinationals, while selling some of our own registered products.

Hunan Haili’s directional add-issuance was recently approved by China’s CSRC. How can it attract investment and cooperation?

Food security is a top priority of a country, and modern agriculture requires pesticides. The current directional add-issuance will be used for our agrochemical business operations. The total amount we fundraised is no more than RMB 700 million, which will be spent on the newbuild with an annual 4,000-ton carbaryl capacity and an annual 5,000-ton thiophanate-methyl capacity in Ningxia base, which will include 30,000-tons of phosgene production equipment, as well as a 3,000-ton pirimiphos-methyl production plant in Guixi. Through implementing the components of these projects, our production distribution will be further optimized, and our leading position in the Chinese insecticide market will be reinforced. Among the several products covered, carbaryl and thiophanate-methyl are conventional ones, which are produced through the new process and are expected to greatly reduce the discharge of wastes while greatly improving work safety. At present, the pirimiphos-methyl market looks promising. Through the implementation of this project, our advantages in phosgene can be further utilized, which will establish a strong foundation for the company’s transformative future development.

Under China’s rural revitalization and agricultural development, as a time-honored enterprise, how will Hunan Haili position its role in China’s new development initiative? And how will Hunan Haili contribute to China’s agricultural development?

At Hunan Haili, we always remember our corporate mission of ″securing food supplies and living a better life,″ as well as our corporate values of ″being open-minded and creative to benefit future generations.″ We are committed to becoming a comprehensive services provider covering seed development, crop protection and agricultural product testing, and we make the most of our overall advantages in R&D, manufacturing and industry chain development. We adhere to the ″ecology first and environmentally-friendly development″ concept, and we endeavor to make Haili a green, peaceful and happy new Haili. We will continue to contribute to the food security initiative of China and the entire world. While serving customers, we serve people.

Closing Remarks

Hunan Haili Haili is a time-honored state-owned enterprise with a proven track record. During its many years of development, Hunan Haili’s staff has assumed their responsibility to ensure food security and food safety for the country. Hunan Haili follows the national strategy of ″growing crops via technology,″ being committed to providing more advanced technologies, better products and more considerate services. Hunan Haili will continue its effort to perfect the company’s three main businesses, which are agrochemicals, new chemical materials and seeds, to the satisfaction of all parties, including customers, investors, employees and society, which we will achieve through our hard work and effective business performance.