Udragon: Dedicated to aspiration and creation

During the 22nd AgroChemEx, Wu Shan (Executive Deputy General Manager of Zhejiang Udragon Pesticides and Chemicals Co., Ltd.) was interviewed by the media. Here is a follow-up report on how Udragon can maintain its path of unique creation, steady growth and success in pesticide development.

Q: Over the past few years during COVID-19, Udragon’s sales increased from RMB676 million in 2019 and RMB896 million in 2020 to RMB913 million in 2021, highlighting its constant growth. How was the company’s performance in 2022? Can this growth be sustained? How can you maintain such a steady growth?

A: In recent years, due to various factors such as the spread of COVID-19, the global economic slowdown, extreme weather and geopolitical tensions, the pesticide supply chain and industrial chain have faced great challenges. With a dedicated aspiration, Udragon always adheres to its corporate spirit of technical development and product innovation, to provide quality products and services. With the unremitting efforts of its work team, the company has achieved steady business growth over the past three years, with sales totaling RMB1249 million in 2022. After the relaxation of the COVID-19 lock-down policy, the gradual recovery of the global economy and the steady growth of market demand, we are confident in achieving new breakthroughs in Udragon’s performance.

Above everything else, business growth is inseparable from the support of national policies. The agrochemical industry is the nation’s key pillar industry, which is responsible for food security and crop safety. China has successively implemented a series of policies and regulations that benefitted the innovative, green and high-quality development of the pesticide industry, creating is an appropriate pro-business environment. Udragon has been growing due to its steady operations. We want to create a solid foundation and make continuous improvements in five dimensions, which are  research, production, supply, marketing and services, which will enable us to achieve advancement in terms of both quantity and quality. It is especially important for us to keep investing in R&D and innovation to continue launching new products, like the creation and successful release of our novel product, Tiorantraniliprole, in 2022 after 10 years of hard work. Later, more new products are scheduled for launch. On the one hand, Udragon is constantly optimizing its product structure to develop and promote novel products of high added value, according to market demand. Udragon is also working to increase product capacity as appropriate. In 2022, Udragon invested in increasing the capacity of its Gansu Beida production base, which we believe will further increase our capacity and extend our industrial chain, resulting in improved economy of scale. We believe that production, research, supply, marketing and services are important links that will complement each other in a complete business system, and continuous improvement in the five dimensions is the cornerstone of the sustainable development of enterprises.

Q: Gansu Beida Bioscience Co., Ltd., Udragon’s production base in Gansu, held a groundbreaking ceremony on March 6th at the Hexipu Chemical Cyclic Induystrial Park, Yongchang County, Jinchang City, Gansu Province, marking its new annual 22,000-ton chemical pesticide technical and 5,000-ton fine chemical intermediate capacities. Board Chairman Wu mentioned that the implementation of the project would extend the company’s industrial chain and improve its economy of scale, which is an important strategic step for Udragon to increase production and enhance competitiveness. Therefore, will you please tell us a little more about this?

A: After years of technical improvements and accumulating experiences, Udragon has constantly optimized the key production processes of its new products and primary products. We have also achieved satisfactory results in a series of pilot productions. However, our existing production is about to become overloaded, which will not meet our future development requirements.
 
Product capacity is an important indicator of the core competence of enterprises. In order to break through capacity restraints, we conducted careful prior investigations and finally opted to have a presence in the Hexipu Chemical Cyclic Industrial Park, which is one of the 31 key pesticide industrial parks included in China’s 14th National Five-Year Plan, in line with China’s national policies. The location is rich in basic raw materials, with a stable supply of green energy. We plan to use 630 mu of land, and phase I is scheduled for completion and operation in 2024. We are prepared to build the Gansu base as China’s first-class digital and modern research and production base, and the implementation of the project will provide a good platform for our medium and long-term development. It is an important initiative for Udragon’s sustainable development.

Q: After 10 years of hard work, Tiorantraniliprole, Udragon’s independently created and patented insecticide, has now been launched in the market and is expected to offer a new alternative for the prevention and control of lepidopteran pests, such as the diamondback moth. Please brief us about this product.

A: While concerns over food safety are rising, medium and high toxic pesticides are being delisted one after another, especially in terms of insecticides, which have moved rapidly towards low-toxicity and high efficiency-oriented development. Currently, diamide insecticides are attracting  more attention. More than 20 years ago, Udragon already began the process of creating novel pesticides. After many years of technical development and accumulating experiences, Udragon finally created its novel product, Tiorantraniliprole, which was granted registration as both a technical and a formulation  in 2021. The product has good stomach toxicity, being systemic, fast acting, long lasting and low toxic to non-target organisms, offering a new option for controlling diamondback moth and lepidopteran pests.

At an early stage, we invested heavily in extensive experimentations and demonstrations, as well as field observations at both home and abroad. We have developed solutions targeting a variety of insect pests. Since the launch of Tiorantraniliprole, it is been highly and widely recognized by growers and distributors in regions with high incidences of diamondback moths, such as the provinces of Hainan, Yunnan and Guangdong. Meanwhile, we have initiated the registration process in the Southeast Asian market and the South American market. We are confident in the promising market potential and future prospects of Tiorantraniliprole.

Q: Insecticide resistance has always been an issue that affects the life cycle of many product varieties. How can Tiorantraniliprole avoid this limited life cycle?

A: The rising resistance from insecticides is closely related to the method of application, which often causes rapid resistance if not done properly, therefore, affecting a product’s life cycle. For our product, Tiorantraniliprole, we have taken three measures to prevent the development of resistance, which are publicizing scientific application, establishing resistance monitoring mechanisms, and developing new product mixtures.

In terms of application technique, we strictly restrict the frequency of use of Tiorantraniliprole during a single season. We also develop product mix-use and rotating-use mechanisms according to local conditions, in collaboration with growers, distributors and partners in local markets. In terms of resistance monitoring, our marketing team has established a resistance monitoring mechanism, a response plan and solutions for regions with the frequent occurrence of resistance, to solve problems as they arise. In terms of the development of product mixtures, after many years of work, we have developed mixtures with obvious synergistic  effects, which are currently in the registration process. We believe that these products are interrelated and can interact with each other, to extend the life cycle of Tiorantraniliprole.

Q: The creation of novel compounds takes a long time and required a high level of investment in the early stages and an even bigger investment in promotion and marketing. It is a long process to reach product profitability and achieve complete change. Is Udragon destined to continue this process of creation?

A: The creation of new compounds is indeed a long-term, expensive and risky process. Innovation is always part of Udragon’s philosophy and development outlook, and the creation of new compounds is among its top priorities. As an agrochemical enterprise with innovation as its core competence, we have successfully launched our two unique products, Tiorantraniliprole and Spirobudiclofen, and we have explored Udragon’s distinctive path towards product creation and attracting talents. Our research team has actively screened and stockpiled novel compounds, some of which are ready for pre-market development. Although the road to the creation is difficult, Udragon is determined to continue creating more and better products that will contribute to global crop protection.