Recently, Nantong Jiangshan Agrochemical & Chemicals Co., Ltd announced its planning to purchase, by share issue and cash payment, 100% stakes in Sichuan Leshan Fuhua Tongda Agro-chemical Technology Co., Ltd. as being held by Fuhua Group and Jiafeng International. Jiangshan Agrochemical & Chemicals said that the transaction will enable consolidation of the eastern and western resources, restructuring of industrial deployment and regional business distribution.
Both Fuhua Tongda and Jiangshan Agrochemical & Chemicals are China’s glyphosate giants, the consolidation of the two has a significant influence on the industry structure.
Fuhua Tongda is engaged in production and sales of glyphosate and glufosinate, playing an important role in the glyphosate industry. Fuhua Tongda has shaped a production and manufacturing base which covers the full industry chain of glyphosate, having now formed a production capacity of annually 120,000 tons of glyphosate technical, 100,000 KL of glyphosate formulations, 200,000 tons of ion film caustic soda and 60,000 tons of paraformaldehyde. Last August, Fuhua Tongda and other glyphosate manufacturers were once shut down due to flood control requirement, which even resulted in an impact on the price of glyphosate for a short period of time.
China is a major glyphosate producing country, with a total capacity of about 700,000 tons in 2020. After the consolidation of Jiangshan Agrochemical & Chemicals with Fuhua Tongda, the total capacity of the two is expected to reach annually 190,000 tons.
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