Rainbow plans private placement up to RMB2.547 billion for clethodim and 2,4-D production

Rainbow announced on November 16 that the company had received approval from the local government in China for a private placement up to RMB2.547 billion yuan for newbuild of production lines of annual 8,000-ton clethodim, 60,000-ton 2,4-D and 2,4-D isooctyl ester, 1,000-ton clopyralid and 1,000-ton flumioxazin. 

At the end of fundraising, the company’s production capacity of clethodim and 2,4-D, 2,4-D isooctyl would significantly increase and it could increase the production capacity of clopyralid and flumioxazin.

According to the prospectus, the company’s investment will bring about new capacity and new varieties of technical materials, strengthening the company’s industrial chain layout, and benefit the implementation of the advanced manufacturing strategy. 

After the completion and operation of the project, the company’s 2,4-D and clethodim technical production capacity will increase significantly, enabling stronger competitiveness in production efficiency, cost, and quality. 

Also, the newbuild of the promising clopyralid and flumioxazin capacity will enrich the product portfolio of the company, which is an extension towards the upstream, as based on the company’s downstream formulations, thus enhancing the industry chain advantage of the company. 

In the medium and long run, through the implementation of the fundraising, the company’s technical material categories are more diversified, product structure is optimized and the digital management of global operations is improved. With the increased capacity, the company will be in a solid position to undertake purchase orders to fulfill the needs of customers. 

Consequently, the company would be able to constantly increase its global market share, backed up by the company’s Fast Market Access-based global distribution network and the independent registration capability worldwide.