BSM Chemical to further undertake transfer of overseas technical production, international market share of pendimethalin expected to continue rising

In 2022, the Chinese pesticide company, BSM Chemical, achieved both record revenues and profits. With the continuous improvement of the pendimethalin market, BSM Chemical is prepared to actively transfer the overseas production of pendimethalin technical to be become a strategic supplier to internationally-renowned agrochemical enterprises. Regarding the company’s performance in the first quarter of this year, Zhong Xijun (General Manager of BSM Chemical) said, ″We are receiving plenty of purchase orders at this time and are running very well with production.″

According to its financial report, in 2022, BSM Chemical recorded a revenue of RMB768 million, a year-on-year increase of 44.91%, while the net profit attributable to the parent company hit RMB153 million, a year-on-year increase of 171.10%. During a business performance evaluation meeting, the management of BSM Chemical attributed the performance rise to ″satisfactory production and sales, sufficient purchase orders and rising prices of major products.″

In 2022, BSM Chemical cooperated closely with the international agrochemical giant, BASF, which helped achieve high levels of sales. Due to the low production rate of BASF’s production line, as well as tight global supply, the pendimethalin market remained elevated throughout the year.

BSM Chemical is a leading manufacturer of pendimethalin, with a current production capacity of 12,000 tons fully utilized in 2022. Historically, it generated a total output of 11,999.19 tons, of which 11,020.49 tons were sold out. In addition, in 2022, the company’s domestic market share of pendimethalin technical stayed at 60%. Currently, the company’s research and development programs cover new pesticide varieties, including methoxyfenozide and topramezone, as well as new C5 materials, such as 3-pentanone and 1-pentene.

The company’s ongoing projects under construction include the upgrading of its hydrogenation series, pendimethalin series, and methoxyfenozide series, as well as the newbuild of an annual 8,500-ton pentanone new material plant.

According to Zhong Xijun, at the end of 2022, the company’s annual 8,500-ton pentanone new material project investment spending already reached 70.48%, adding its hydrogenation series, pendimethalin series and methoxyfenozide series upgrading project is scheduled for completion in August 2024. Upon completion, the project will bring an additional annual capacity of 2,000 tons of methoxyfenozide technical and 1,000 tons of methoxyfenozide formulation. On the other side, the company’s Ningbo R&D Center is more than 50% completed.