Interview: environmental must be given priority during enterprise’s development

Shandong Sino-Agri United Biotechnology Co., Ltd., a subsidiary of China agricultural Materials Groups Shanghai branch, mainly engaged in manufacturing of chemical pesticide, including active ingredients of acetamiprid, imidacloprid, pyridaben, propamocarb hydrochloride, thiaclorid, bifenthrin, fenpyroximat, Myclobutanil, diethofencarb and formulation products. By instilling the “green environmental protection” in to capacity investment, Shandong Sino-Agri United Biotechnology (Sino-Agri United) has become a top influential agrochemical producer and supplier in China. Agropages talked with Mr. Xu hui, president of Sino-Agri United about the history of its developments.

Mr. Xu told Agropages that the hardship in 2010 has brought extreme difficulties to the Chinese pesticides industry. But Sino-Agri United successfully gained a sale of 320 million Yuan, up 11.5% year on year, through joint effort of all staffs. During the first half of 2010, Sino-Agri United has produced 3,800 tons of ais for acetamiprid, imidacloprid etc., up 35% year on year, the production of formulation products has grown by 15% to 2,100 tons.

As an important and major product from Sino-Agri United, imidacloprid was also discussed by Mr. Xu. With an annual sale of $ 1 billion, imidacloprid ranks at the top of all insecticides. It will continue its crucial role in crop protection fields in next five years. Though the current 23 qualified manufacturers in China are able to produce 30,000 tons per year, only 12 of them can sustain their operation this year, which makes an actual yield of 15,000 tons. Due to the complicated techniques in manufacturing and waste disposals, it is forecasted that only 5 or 6 manufacturers will survive the centralizing tendency and the balance between production and demand would be achieved.

Recently Chinese government has issued series of policies such as raising requirement on registration, standardized policies in environmental protection and safety, which speed up the consolidation among pesticide industry. Like other integrated industries, Chinese pesticide industry will progress into a more intensified and scale-enlarged pattern. The number of China's technical pesticide manufacturers would be cut by 30% in next three years, said Mr. Xu.

Mr. Xu also told his opinion about the qualities a company must possesses to survive the consolidation. First, the optimized portfolios and enlarged scale are crucial for a company, owing to the coming of internationalization and information era, the re-assignment of resources and labor division has caused the necessity of scale enlargement and products optimizing, the company must niche the target market with its advantageous products. Secondly, the reduced product margin caused by the product homogeneity has also made the urgency to technical innovations. Furthermore, one should strengthen its operation management by improving efficiency and cutting costs.

Mr. Xu stressed Sino-Agri United’s high regard on environmental issues. By instilling the concept of “environmental must be given priority during our development”, Sino-Agri United has introduced advanced equipments in its production lines to minimize the consumption and environmental impact. Taking its advantages in formulation technologies, Sion-Agri United becomes the first company to develop series of environmental friendly products. These water-based products including: acetamiprid 60 WP, pyridaben 15 EW, difenoconazole 10 ME, avermectins 3 EW, imidacloprid 60 SL, imidacloprid 35 SL and imidacloprid 70 WP etc. Currently, technology innovation remains a slogan in China for its labor and fund consuming, but it is an inevitable course Chinese agrochemical company must experience.

future prospect……

Mr. Xu gave his foresight of the opportunities and challenges for the coming year. Sino-Agri United has planned short-term and long-term strategies which focus on its "green” products. It also planned to become the major manufacturers of neonicotinoid insecticide and triazole fungicide in China in next three years. Become a listed company is expected as well.

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