Cynda: Leveraging the complete industry chain of off-patent products to vigorously expand into the innovative compound market

Date:11-02-2023

Founded in 1999, Shandong Cynda Chemical Co., Ltd. (″Cynda″) is primarily engaged in the research, production, and sale of safe, low-impact, and environmentally friendly herbicides. It also operates in the fields of fungicides and pesticide intermediates. The group currently has a workforce of over 2,000 employees, with its operational headquarters located in the Jinan Innovation Zone, Shandong Province, and the innovation research institute headquartered in Shenyang. Cynda operates three production sites, namely, Boxing Cynda situated in Boxing Economic Development Zone in Binzhou, Shandong Province, Weifang Cynda situated in Lingang Chemical Park of Weifang Binhai Economic and Technological Development Zone, Shandong Province, and Liaoning Cynda situated in Comprehensive Industrial Park of Huludao Economic Development Zone, Liaoning Province.

The early advantageous products of Cynda included clethodim, isooxadiazon, dimethomorph and imidazole herbicides. Now, Cynda has evolved into a large manufacturer of imidazolidinone herbicides (imazethapyr, imazameth, imazamox, imazapyr), cyclohexanedione herbicides (clethodim, sethoxydim), isooxadiazon and dimethomorph in Asia. Adhering to a strategy of ″specialization and refinement″, Cynda stands at the forefront of the domestic market in terms of production capacity, research and development capabilities, product quality, and technological promotion. In May 2017, Cynda successfully get listed on the A-share market.

In the development of off-patent technicals, Cynda focuses on optimizing its internal product portfolio and prioritizes the integrity of the industry chain. Cynda adopts a ″dual-factory, dual-production line″ layout for all its proprietary products to ensure stable production and  reliable supply. Taking clethodim as an example, all key intermediates required for synthesizing this compound are produced in-house by Cynda. Furthermore, Cynda has established a clethodim intermediate production line in each of its manufacturing sites. For clethodim formulations, Cynda has two dedicated formulation production lines at two sites. These efforts enable Cynda to effectively meet the demands of end customers for both formulations and technicals. By virtue of high product quality and dependable supply, Cynda has successfully entered the pesticide markets in multiple countries and regions, including the U.S., Australia, Brazil, Paraguay, Argentina, Uruguay, and the European Union.

Apart from the mature, stable, and robust off-patent product lines, Cynda embarked on a challenging path of ″second entrepreneurship″ a decade ago by venturing into the development of novel chemistries. Through relentless efforts and a forward-looking approach, Cynda has successfully developed and launched several innovative compound products with breakthrough significance on the market. This journey has gradually transformed Cynda into a multinational company with an innovation ″DNA″.

Liaoning Cynda - The production hub for off-patent new products and innovative compounds

Liaoning Cynda Agricultural Science Co., Ltd. (″Liaoning Cynda″) is a wholly-owned subsidiary of Shandong Cynda Chemical Co., Ltd. Established in 2017, Liaoning Cynda boasts a registered capital of RMB280 million and occupies an area of 607 mu, with an investment of RMB2.5 billion. It holds the status of being a national high-tech enterprise, possesses a B-level environmental protection rating, and serves as the production hub for the current and future off-patent products and innovative compounds of the group.

Liaoning Cynda currently has a built-up area of 298,000 square meters, comprising 45 structures with a total floor area of 125,000 square meters. Supported by its 930 employees, Liaoning Cynda achieved a sales revenue of RMB1.2 billion in 2022. It is estimated that once all construction works are completed, Liaoning Cynda’s sales revenue could reach RMB5.0 billion, with a tax contribution of around RMB1.0 billion, potentially creating 1,500 job opportunities. Of the products produced by Liaoning Cynda, 70% will be exported to major agricultural countries like the U.S., Brazil, and Australia, while the remaining 30% will be sold under Cynda’s own brand domestically.

The first-phase project of Liaoning Cynda, with an investment of RMB768 million, includes the capacity building of 6,000 t/a technicals and 10,000 t/a formulations. The second-phase project, with an investment of RMB120 million, involves the capacity building of 5,000 t/a clethodim technical, 10,000 t/a sodium sulfide, and 9,000 t/a molten salts. Both the first- and second-phase projects are already in normal operation. The third-phase project of 1,500 t/a imazethapyr, with a roughly RMB200 million investment, commenced trial production in December 2022. The fifth-phase project of 1,000 t/a imazapyr, with an investment of around RMB200 million, commenced the construction in October 2022 and started the commercial operation in June 2023.

The sixth-phase project is Cynda’s patented product project, encompassing the production of compounds like benquintrione, pyraquinate, and oxaziclomefone. Currently, the project which now is in the design phase holds significant importance for Cynda in establishing an innovative corporate image, paving the way for entering new arenas of international agrochemical industry development, and creating more value for farmers, partners and shareholders.

Liaoning Cynda factory area

Bearing the responsibility of innovation, Cynda introduces a succession of patented compounds

With the backing of the complete industry chain of off-patent compounds, Cynda has experienced swift growth in recent years. Nevertheless, the global economy is presently in a state of transformation, and companies across sectors, including agriculture and chemicals, confront substantial challenges and competition. In this context, ongoing innovation becomes the sole imperative for survival and the catalyst propelling Cynda to greater heights.

Innovation in pesticides is crucial for overcoming the developmental bottlenecks faced by conventional pesticide companies of China, and holds significant importance for the sustainable development of the pesticide industry in China and globally. As early as 2012, Wang Xianquan, Cynda’s board chairman, began focusing on the development of innovative compounds and led the team to conduct research and development activities. 

Wang Xianquan (third from the right), Cynda’s board chairman led the team to conduct research and development activities

After a decade of effort, Cynda introduced its first innovative compound, benquintrione, to the market in 2022. In 2023, the agrochemical market experienced a downturn due to low demand and falling prices, leading to a decline in sales performance for almost all products. However, Cynda’s brand sales, supported by the innovative compound benquintrione, defied the trend and showed an upward trajectory. This clearly demonstrates the robust vitality that innovation brings to the company.

Achievements of Cynda’s innovative practice

HPPD inhibitor herbicides have gained global attention in research and development due to their high activity, broad spectrum of weed control, good crop safety, low resistance risk (with only four cases of weed resistance reported to date), and structural diversity. Cynda has proactively undertaken the responsibility of herbicide innovation, to ensure that herbicides surpass the evolving resistance of weeds and efficiently and safely address the challenge of weed resistance, leading to the creation of outstanding agrochemical products.

- Benquintrione

In 2016, Cynda, in collaboration with Central China Normal University, established the ″Cynda Innovation Research Institute″ to carry out research and development as well as the transformation of innovative compounds. The Institute introduced the globally first innovative compound registered for use in sorghum fields as post-emergence stem and leaf herbicide - benquintrione (marketed as Cynda Liangmancang^®). In 2020, benquintrione received pesticide registration from the Ministry of Agriculture and Rural Affairs and was permitted to sell on the market. On June 14, 2021, benquintrione passed the acceptance of the program titled Research and Demonstration of High-Efficiency, Low-Risk Small Molecule Pesticides and Formulations, a key R&D program of the Ministry of Science and Technology during the 13th Five-Year Plan period. The discovery of benquintrione represents a significant technological breakthrough globally. It marks the first application of an HPPD inhibitor herbicide in sorghum fields globally for the control of both monocotyledonous and dicotyledonous weeds, addressing the challenge of controlling aggressive weeds such as Panicummiliaceum L. and Chloris virgata in sorghum fields throughout the entire growth period of this crop.

Patented product: Benquintrione

Formulation: 10%SC

Target Crops: Sorghum, Cotton and Wheat

Capacity: 50mt/an

Register progress: Chinese active ingredient registration approved in 2020, with 20 years of new compound patent protection until 2035.

- Pyraquinate

Cynda has developed an innovative compound for the control of resistant Leptochloa and Echinochloa in rice fields called pyraquinate (generic name in English: pyraquinate; development code: CDH18119; trade name: Daoqingyang^®). In 2019, Cynda applied for compound patents for pyraquinate, including patents in China, the PCT, Japan, and other countries. In 2021, pyraquinate was included in the program titled Creation and Industrial Application of New Varieties of Green Herbicides, a key R&D program of the Ministry of Science and Technology during the 14th Five-Year Plan period. Pyraquinate is expected to be introduced to the market in 2024.

Pyraquinate overcomes the global challenge of conventional HPPD inhibitor herbicides not being safe for use in indica rice fields, pioneering the safe use of HPPD inhibitors in all rice varieties that had been planted. Pyraquinate is safe for use on hybrid rice, conventional indica rice, japonica rice, and glutinous rice. Furthermore, it exhibits high safety for humans and animals.

Pyraquinate does not exhibit cross-resistance with existing compounds such as cyhalofop-butyl, penoxsulam, metamifop, and quinclorac. This makes it an important tool for resistance management, effectively controlling grassy weeds that have developed resistance to ALS inhibitors, ACCase inhibitors, and hormonal herbicides. As an ideal herbicide for rice fields, it offers significant application value and originality.

Cynda has completed the feasibility assessment for the registration of pyraquinate in markets such as Southeast Asia, Central Asia, Africa, and Latin America. Safety and efficacy trials have been initiated to advance the registration process. These efforts will provide robust support for expanding into global markets and fostering business collaborations.

Patented product: Pyraquinate 

Formulation: 5% OD

Target Crops: Rice

Capacity: 50mt/an

Register progress: ISO common name publicated in 2023, and progressed to Launch Gate in 2024.

- Feproxydim

In 2020, Cynda unveiled its third groundbreaking compound, feproxydim (trade name: Mabaike^®; 10% feproxydim EC), for effective control of resistant barnyard grass (Echinochloa), which is expected to be available on the market in 2024. In 2021, Cynda applied for the inclusion of feproxydim in the program titled Open Competition, a key R&D program of the Ministry of Science and Technology during the 14th Five-Year Plan period. This achievement will establish Cynda as the first company to launch two patented rice field herbicide products in the same year, marking a significant milestone in the domestic and global herbicide industry.

Patented product: Feproxydim

Formulation: 10%EC

Target Crops: Rice

Capacity: 50mt/an

Register progress: Progressed to Launch Gate in 2024.

Unique products of Cynda

Cynda holds exclusive registrations in China for three products: picolinafen, pyraflufen-ethyl, and 2,4-DB.

 

- Picolinafen

Picolinafen is a pyridinylamide herbicide developed by BASF. Compared to other pyridinylamide herbicides, picolinafen stands out for its high herbicidal activity, long-lasting effect, resistance to degradation, and crop safety, among others. These characteristics have made it a successful product on the market. Picolinafen was introduced in 2002 and initially found its primary market in European grain-producing countries. Now, it has become a key pyridinylamide herbicide promoted globally by BASF. 

Picolinafen is primarily used on crops like triticeae, corn, and mangetouts. It exhibits effective control of annual grasses, broadleaf weeds, as well as barnyard grass, among others. It synergizes well when used in combination with other herbicidal compounds and can be employed as part of broad-spectrum herbicide formulations for weed control in crops.  

Cynda is currently the only company in China that holds the registration for picolinafen technical.

Unique product: Picolinafen 

Formulation: 20%SC, 75% WG

Target Crops: Wheat

Capacity: 500mt/an

Registration status: EU TE (2022), UK and Australia (2023)

- Pyraflufen-ethyl

Pyraflufen-ethyl is a pyrazole contact herbicide developed by Nihon Nohyaku Co., Ltd. It is a selective pre-emergence and post-emergence herbicide for cereal crops, primarily used to control broadleaf weeds such as cleavers, Galeobdolon chinense, chickweed, Veronica persica, and Matricaria inodora. It is particularly effective against cleavers at the 2-4 leaf stage and can also be used as a defoliant for potato and cotton, as well as for chemical fallow.

Cynda is currently the only company in China that holds the registration for pyraflufen-ethyl technical.

Unique product: Pyraflufen-ethyl

Formulation: 2%SC, 2.5% EC and Glyphosate + Pyraflufen-ethyl SC

Target Crops: Wheat, Defoliant for potato and cotton, chemical fallow

Capacity: 50mt/an

Registration status: EU TE, UK and Australia (2023)

- 2,4-DB

2,4-DB is a selective herbicide belonging to the phenoxy carboxylic acid class with hormonal activity. It is exclusively registered for use in rice fields by Cynda. 2,4-DB provides excellent control of both annual and perennial broadleaf weeds and demonstrates superior performance in managing Sagittaria trifolia and Alisma spp., while ensuring excellent safety for rice crops. Additionally, it provides effective control of Echinochloa crus-galli, which is a significant threat to rice fields.

2,4-DB is highly effective against mature broadleaf weeds in alfalfa fields, while being extremely safe for alfalfa. Additionally, it can be used in corn, cereals, peanut fields, and more.

Cynda is the first and currently the only company in China that holds the registration for 2,4-DB.

Unique product: 2,4-DB

Formulation: 33%SL, 400g/L and 500g/L SL, 931g/L EC

Target Crops: Rice, corn, cereals, soybean, peanut, pastures

Capacity: 500mt/an

Registration status: EU TE, UK and Australia (2023)

Looking forward, Cynda will continue to strengthen its complete industry chain layout for off-patent products. While maintaining steady growth, Cynda will remain steadfast in its commitment to the creation of novel compounds. As innovation is the lifeblood of any enterprise, Cynda will unwaveringly pursue the path of technological innovation in the field of high-end herbicides, explore the international market relying on the robust Chinese pesticide market, and stands out with differentiation.

lf you want to get in touch with Cynda, or share your company story and introduce your technology/product specialty, please contact Mickey Shan at: mickey@agropages.com

This article was initially published in AgroPages' '2023 Market Insight' magazine.