BSM: Pendimethalin capacity to reach annually 18,000 tons after expansion

On June 14, Chinese agrochemical company Shaoxing BSM Chemical was being interviewed by some securities institutions, where the company’s top management answered questions on the production and market planning of the pendimethalin product. 

1. What is your current pendimethalin production capacity? How is the planning for future development?

Currently, the global annual consumption of pendimethalin is nearly 50,000 tons, mainly concentrated in the northern hemisphere. In January 2024, the herbicide metolachlor was banned in Europe, thus providing more space for pendimethalin. So far, BSM possesses an annual production capacity of 12,000 tons of pendimethalin, while an extension project with a yearly production capacity of 6,000 tons of pendimethalin is progressing. After the extension's completion, the company's total capacity will likely reach 18,000 tons annually.

BSM is prepared to further deepen its cooperation with existing customers in the future. Meanwhile, BSM will utilize the advantages and the market influence of Jielike in developing countries in Asia, Africa, and Latin America so that we can grow our pendimethalin market in these countries and regions.

2. The price of pendimethalin has decreased. How does BSM view the impact of price on your competitive advantage?

BSM has completed its complete industry chain layout for pendimethalin, having realized the self-production of all intermediates. Based on the complete pendimethalin industry chain, BSM’s product pricing and market strategy can be flexibly adjusted to fit the industry’s development. Recently, the pendimethalin market has gradually turned to off-season, when the product price has gradually returned to a balanced situation. The price change of the technical material product is of help to defend ourselves against the adverse market, enabling BSM to maintain and strengthen the company’s competitive advantage in the market.

3. What is the current production and sales status of BSM’s C5 Phase I project?

BSM’s ″annual 8,500-ton pentanone series green new material project″ has been brought on stream. So far, all production processes have been running in parallel, with a stable operation and production of quality products. The production is in good condition, which allows for a gradual increase in sales. Considering the equipment features and the market change, BSM will reasonably adjust the product structure to execute long-term contracts step by step with prime downstream customers to ensure stable product supply.

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