Hailir: Cultivating core strengths for long-term success in global agriculture through innovation, dual drive strategy

Date:03-13-2024

This article is initially published in 2024 China Pesticide Industry Watch magaznie , click to read and downlowd 

In recent years, as China prioritizes rural revitalization and food security, the agrochemical industry has witnessed significant growth, establishing itself as a key global supplier. With increased internal competition, the industry is now in a pivotal phase of transitioning towards high-quality development.

As a leading player that has navigated the agrochemical sector for over two decades, Hailir has evolved from a pesticide formulation company to a globally integrated enterprise that offers intermediates, AIs, and formulations. Therefore, the trajectory of Hailir’s development and corporate strategy deserves thorough observation and discussion.

AgroPages recently interviewed Ge Jiacheng, Chairman and CEO of Hailir Pesticides and Chemicals Group. Throughout the interview, Ge provided a comprehensive overview of Hailir’s growth journey, strategic layout, and proactive responses to industry changes, such as technological innovation and market expansions. This interview offered valuable insights into Hailir’s approach to navigating intense market competition and ensuring sustainable market penetration. This interview will, therefore, offer industry professionals valuable entrepreneurial insights, covering topics such as fostering core competitiveness, stimulating innovation, and capturing customer demand, among others.

Ge Jiacheng 

Chairman and CEO of Hailir Pesticides and Chemicals Group

AgroPages: Mr. Ge, could you please provide an overview of the development and achievements of Hailir?

Ge Jiacheng: Hailir Pesticides and Chemicals Group (″Hailir″, the ″Company″ or the ″Group″), established in 1999, is a state-designated enterprise specializing in the production of pesticides and fertilizers. As a globally oriented agrochemical group, Hailir is dedicated to the research, development, production, sales, and technical servicing of pesticides, agrochemical and pharmaceutical intermediates, and functional fertilizers. Hailir boasts a workforce of over 3,200 employees and operates five major production bases. Through well-established QHSE practices and streamlined management, Hailir has achieved an annual production capacity of 80,000 tons of technicals and 75,000 tons of formulations, consistently delivering high-quality products and services to its global partners. The company has more than 10 sales subsidiaries and a team of over 700 crop technicians serving the domestic crop protection market. Hailir has expanded its overseas presence to encompass over 80 countries and regions. Its products have garnered acclaim from both domestic and international customers. In 2023, Hailir was ranked at the forefront of the Top 100 China’s Pesticide Companies and China’s Top 50 Pesticide Exporters.

Hailir began with pesticide formulations then expanded to upstream technicals and intermediates, establishing an integrated development pattern of formulations and technical, including intermediates, and achieving strong risk resistance and profitability. With the unremitting efforts of all its staff and the strong support of global partners over the past two decades, Hailir was successfully listed on the A-share main board on January 12, 2017 (stock code 603639). Through years of dedicated efforts and standardized operations, Hailir achieved an operational income of RMB4.535 billion in 2022, marking a 22.60% year-on-year increase and maintaining an annual compound growth rate of more than 20%.

AgroPages: Please provide a comprehensive introduction to Hailir’s current strategic layout in formulation, technical, and intermediate integration, including the main product lines of the major production bases under the group and their industrial chain advantages.

Ge Jiacheng: Hailir is committed to ensuring stable supply and providing high-quality products to serve global agriculture.

The company possesses five major production bases covering formulations and technical, including intermediates, to offer robust support to global partners and advance global agriculture with stable product supply capacities and high-quality products.

Hailir Pesticides and Chemicals Group Co., Ltd., established in 1999 in the Chengyang District of Qingdao City, is dedicated to manufacturing and selling pesticide formulation products. Recognized as an AAA-credit enterprise for many years, Qingdao Hailir holds certifications for ISO9001, ISO14001, and OHSAS18001 systems. Operating for more than 20 years, the branch has fostered Hailir's unique service culture and developed a skilled team, providing strong guarantees for efficiently meeting customer needs.

Qingdao Audis Bio-Tech Co., Ltd., (″Audis″), established in 2001 in Laixi City, Qingdao, is a nationally designated pesticide production enterprise. With top-notch management systems, Audis’ formulation processing adheres to stringent standards, such as ISO9001, ISO14000, and OHSAS18001. Specializing in green pesticide formulations, Audis offers a wide range of products, including WDG, SG, CS, FS, DF, GR, SL, WP, SP, EC, SC, SE, OD, ME, EW, ZC, and others. Through advanced equipment, cutting-edge technology, and comprehensive formulations, Audis caters to the diverse needs of both domestic and international customers.

Stereoscopic Warehouse of Audis

Qingdao KYX Chemical Co., Ltd., (KYX), established in 2002, primarily engages in the production of emamectin benzoate technicals and formulations. It also undertakes the pilot production and validation of newly proposed projects within the group, providing strong support for large-scale production facilities and intelligent settings for new projects.

Shandong Hailir Chemical Co., Ltd., (Shandong Hailir), established in 2008 in the Binhai Chemical Industry Park of Weifang, Shandong Province, specializes in manufacturing various technical, such as prothioconazole, pyraclostrobin, imidacloprid, acetamiprid, thiamethoxam, and clothianidin, as well as some supporting intermediates. With a considerable market presence and pricing power, Shandong Hailir prioritizes sustainable growth by investing heavily in safety and environmental protection, to provide high-quality services and supply guarantees to its partners.

Qingdao Hengning Biotech Co., Ltd., (Hengning), located in the Pingdu Xinhe Chemical Industry Park of Qingdao, was established in July 2019. Spanning an area of 581 mu, Hengning is planning the construction of 14 workshops for technicals and supporting intermediates. In line with the national, Shandong Province, and Qingdao city governments’ ″14th Five-Year Plan,″ the group positions Hengning as ″Humanistic Hengning, Intelligent Hengning, and Green Hengning,″ marking it as a strategic area of growth for Hailir Pesticides and Chemicals Group over the next decade. Hengning’s first-phase project, including the insecticides, diafenthiuron and chlorfenapyr, as well as the fungicides, difenoconazole and propiconazole, entered trial production in June 2022, and all units are currently operational. Its second-phase project is now in the construction phase, with its first batch of sub-projects scheduled for completion and operation in 2024. Its third-phase project, which focuses on high-efficiency fungicidal technicals and intermediates, has received safety assessment, environmental impact assessment, and energy assessment approvals, and is set for completion and operation in 2024. Its fourth-phase project, involving the manufacturing of green, efficient agricultural technicals and intermediates, is currently undergoing design evaluations and scheduled for completion and operation by the end of 2024. Its fifth-phase project, aimed at achieving an annual production capacity of 26,000 tons of agricultural technicals and supporting intermediates, is in the process of technical proposal verification and initial design, and is scheduled for completion and operation in 2025. Multiple reserve projects and self-developed projects, such as 599, 286, 1371, 1274, 1277, 238, 3726, 122, 1011, 3245, and several other newly invented compounds, are undergoing technical verification. Once all Hengning’s projects are completed, they are expected to add a production capacity of over 50,000 tons for technicals, positioning Hengning as a major production hub for domestic SDHI fungicides, bisamide insecticides, and other key products. Through full-scale production and operations, Hengning will emerge as a leading agrochemical enterprise in the manufacturing of technicals in China, further expanding Hailir’s advantage in its ″integration of technicals and formulations″ strategy.

Hailir prioritizes its product supply capacities. In addition to ensuring product effectiveness and quality improvement in the construction of various production bases mentioned previously, Hailir focuses on the optimization of product manufacturing processes, engineering technologies, and management systems. In terms of formulation product supply, Hailir is expediting the development of smart factories and intelligent workshops, building more than 10 automated production lines over the past two years, and increasing its production efficiency by over 60%. Additionally, constructing 16 new production lines and implementing an informationized logistics and warehousing system ensure the timely delivery of international formulation product orders. In terms of technical products, the company continuously optimizes processes, successfully making more than 100 improvements in process, technology, equipment, and related areas for technicals over the past two years, and establishing a solid foundation for subsequent capacity releases.

Five major production bases of Hailir Pesticides and Chemicals Group

AgroPages: Currently, the domestic pesticide industry is grappling with severe oversupply and significant price declines, impacting many manufacturing enterprises. How do you assess this situation, Mr. Ge, and what are your projections for the industry’s development in 2024 and beyond? In the face of intense competition, how does Hailir plan to highlight its strengths in existing technicals and new offerings? Furthermore, how will Hailir respond to the effects of global industry restructuring?

Ge Jiacheng: The primary reasons for the decline in technical prices lie in reduced demand from certain countries and clients and, more significantly, severe oversupply in the supply-demand balance. The negative aspects are glaringly apparent, and by 2023, we already seriously felt their repercussions. However, from a positive perspective, this situation can be viewed as a ″self-rescue″ opportunity for the industry. Faced with pressure from international competitors, if we continue to maintain high prices that yield high profits, like in 2022, then the demand from foreign markets could shift to other countries. If the demand and processing priorities were redirected to other countries, it could significantly affect the production and product supply of China’s pesticide industry for several years or even longer. Currently, the decline in technical prices has again showcased the competitiveness of the Chinese market to purchasers and demand-side players, therefore, alleviating or reducing some challenges posed by overseas competitors.

The industry’s involution will continue in 2024, with the market showing weak demand in the first half of the year. Demand may see a rebound in the latter half, but more crucial will be how swiftly can excess production capacity be eliminated. This will determine the market’s development in 2024 and subsequent years.

In response, Hailir is building its core competitiveness through innovation. Faced with the current market situation, Hailir will continue to strengthen its foundation and enhance its internal capabilities. On one hand, we will enhance technological innovation for existing products, improving product quality and competitiveness through refined management. On the other hand, we will accelerate the development, promotion, and application of new compounds, support the creation of professional teams, improve the quality of our customer service, and collaborate with partners to build a community with a shared destiny, thereby, addressing the fiercely competitive global landscape.

In terms of existing advantages for technical products, Hailir will continue to solidify its leading position in products such as prothioconazole, pyraclostrobin, imidacloprid, acetamiprid, thiamethoxam, clothianidin, emamectin benzoate, difenoconazole, propiconazole, diafenthiuron, and chlorfenapyr, while increasing its investment in compounds such as dinotefuran, trifloxystrobin, chlorantraniliprole, pyridalyl, and SDHI products.

In terms of emerging products, Hailir is a major global supplier of prothioconazole, boasting advanced process and engineering technologies. When all new workshops are completed, the group’s annual production capacity is expected to increase from the current 4,500 tons to 11,000 tons. Considering this, Hailir will expand its upstream and downstream resources by investing in corresponding raw material manufacturers, to ensure stable global supply. Hailir's chlorantraniliprole utilizes unique Crustacea and Nucleation Attack Technology to enhance product effectiveness. Fluchlordiniliprole, a proprietary compound by Hailir, is a new highly active and long-lasting insecticide. Hailir will actively plan and promote the use of these new products. For existing insecticide and fungicide products, Hailir will focus on optimizing process and engineering technologies, improving production support, enhancing product quality, securing a leading position in supply capacity, strengthening cooperation with multinational companies, establishing strategic partnerships with customers, and empowering the development of global partners.

In response to industry challenges, Hailir will continue to maintain its investment in innovation. Since its inception, Hailir has attached great importance to innovation and embedded ″continuous innovation″ into its corporate culture. In 2003, the group established a research and development center, which prioritizes pesticide research and development as a strategic focus. The group maintains an annual research and development investment of more than 4% of its revenues and is recognized as a national high-tech enterprise, a key high-tech enterprise under the National Torch Program, and a national innovative pilot enterprise. It possesses four national-level innovation platforms, namely a National Enterprise Technical Centre, a key laboratory for pesticide research and development of the Ministry of Agriculture and Rural Affairs, a post-doctoral research workstation, and a national-local joint engineering research center for marine biological pesticides and environmentally-friendly formulations. Hailir has been granted over 210 patents, including more than 140 invention patents, and applied for 8 international patents. It has led or participated in the development of over 30 national industry standards, and has undertaken projects under the National 863 Program, the National 12th and 13th Five-Year Plans for Scientific and Technological Support, the National Spark Program, and the National Torch Program. Hailir is also involved in the national 14th Five-Year Plan for joint innovation projects. The company has received honors such as National Intellectual Property Demonstration Enterprise, Single Champion in Manufacturing Industry of Shandong Province, Shandong Province Technological Innovation Demonstration Enterprise, and Leading Enterprise in the High-End Chemical Industry of Shandong Private Enterprises, and has won awards for industry innovation contributions and provincial and municipal-level scientific and technological progress awards many times, showcasing its strong technological innovation capabilities. Hailir advocates innovation across all employees and aspects, promoting technical improvements and transformations in production, safety and environmental protection, while also encouraging innovation in small techniques, daily management, and marketing. The company garners innovative achievements and rational proposals monthly and attains regular rewards and recognition, with annual funds exceeding RMB5 million for various types of innovations. In 2023, Hailir created more than 160 internal innovation achievements. Its number of innovation projects has increased year-by-year over the past three years, and the quantity of its high-quality innovations continues to grow.  These innovations have made significant contributions to the company's healthy development and fostered a positive innovation atmosphere. The continuous advancement of innovation has established the foundation for building on Hailir’s core competitiveness.

AgroPages: In 2023, Hailir expanded its external cooperation with multinational companies, reaching comprehensive and in-depth collaboration agreements with global giants, such as Corteva and Bayer. What strategic considerations do such collaborations create for Hailir?

Ge Jiacheng: In recent years, Hailir has accelerated its all-round strategic cooperation with multinational companies in technicals, formulations, intermediates, and registration. This continuous effort aims to provide customers with high-quality products and services, create value for them, and drive Hailir’s own development. Moving forward, the company will continue to focus on formulations and technical, including intermediates, expand its product lines, strengthen its business channels and product supply capabilities, and enhance its overall capabilities in management, innovation, and other aspects, to better meet customers’ needs. On the export front, Hailir’s international market expansion strategy is Business to Business (B2B). We will continue to reinforce our supply capacities and provide better quality products and services to our partners.

AgroPages: Could you please provide an overview of Hailir’s current international market expansion efforts? How has Hailir been promoting its overseas business? What are the company’s future overseas expansion plans?

Ge Jiacheng: Hailir employs a ″Dual-drive Strategy″ to expand its global influence.

Hailir’s dual-driven strategy refers to ″the integration of technical and formulations, and the integration of domestic and international markets.″ In terms of products, Hailir focuses on the coordinated development of technicals and formulations. Within the market, Hailir adheres to the coordinated development of domestic and international markets. Through mutual promotion and internal-external coordination, Hailir’s sustained and stable growth is effectively ensured.

Hailir began its international business in 2004, with products such as imidacloprid, acetamiprid and other nicotine insecticides performing exceptionally well in markets across the Americas, Asia, Eastern Europe, and the Middle East. Over the past two years, Hailir has significantly expanded its global business operations, focusing on sustainable development tailored to local overseas market demands while continuously promoting interactions and cohesion with customers. Hailir has increased its market presence in regions like North America, the Middle East, South Asia, and Eastern Europe, cultivating strong relationships with key customers for mutual growth. Through active collaborations with multinational companies, Hailir has established major partnerships in regions such as North America, Central and South America, Australia, Europe, and the Middle East, with five products surpassing RMB100 million. Our partnerships with multinational companies have become deeper, leading to the successful implementation of a growing number of collaborative projects.

In terms of new market expansion, Hailir has established overseas subsidiaries in Brazil, Mexico, Argentina, the Philippines, Myanmar, Laos, and Cambodia. To cater to specific agricultural challenges and partner requirements in these markets, Hailir has adopted a tailored product registration approach, conducting both supportive and independent registrations in more than 100 countries across North America, Central and South America, Southeast Asia, the Middle East, Europe, Africa, and Australia. With over 2,000 registered products, this initiative helps promote the company’s independently innovative products and convey its brand value.

Looking ahead, Hailir will further strengthen its presence in international markets by prioritizing the expansion of customer networks and product offerings, which will involve sustaining the operations of overseas branches, intensifying global product registration activities, nurturing strong partnerships with key collaborators, and augmenting Hailir’s brand influence in foreign markets. By deploying a B2B business model, Hailir aims to effectively serve partners in each target market, address end customers’ requirements, leverage collective strengths, and foster a collaborative environment to achieve mutually beneficial outcomes.

AgroPages: Chinese companies are now starting to demonstrate progress in the development and registration of new pesticide active molecules. Hailir’s annual investment in research and development ranks it at the forefront of the pesticide industry. Could you please provide an overview of Hailir’s current innovative advancements and reserves in compound creation, formulation application, and other areas? How do these innovations empower Hailir’s future development?

Ge Jiacheng: In an increasingly competitive global industry environment, Hailir views innovation as the key driver of continued corporate growth and adopting innovation has evolved from a strategic choice to a necessity for both survival and expansion. The development of novel compounds holds significant importance for the industry and pesticide companies. Firstly, novel compounds help improve control efficacy by offering stronger insecticidal, fungicidal, or herbicidal activities compared to existing pesticides, enabling the more efficient control of agricultural pests, pathogens, and weeds, and leading to enhanced control efficacy and reduced pesticide usage. Secondly, novel products can effectively address resistance issues that arise when pests, pathogens, and weeds become immune to traditional pesticides due to prolonged improper use, which will help improve the effectiveness of pesticide products. Lastly, novel compounds undergo more rigorous toxicity and environmental evaluations than current standards, resulting in reduced negative effects on human health and the environment than traditional pesticides, which is conducive to sustainable development.

Hailir launched the New Compound Research Institute in 2010, assembling a top-notch creative team comprising renowned industry experts and holders of doctoral and master’s degrees. By establishing a platform for designing and synthesizing new compounds and screening their biological activity, the company set out on the path of independent novel pesticide development. In 2017, Hailir began the registration process for its first new compound, fluchlordiniliprole, and established Qingdao Teronsun Testing & Evaluation Co., Ltd., to assist with the registration of new pesticides. In 2022, it began the registration process for its second new compound, FUMANLIUMI, and activated four field trial stations. In 2023, Hailir sequentially established the second and third New Compound Research institutes, further reinforcing its innovation team while simultaneously starting the registration process for its third new compound. Currently, the development of new compounds involves 320 technical research and development staff, including five doctors, over 140 masters, three recipients of special allowances from the State Council, and ten expert consultants from both inside and outside the country.

In 2017, Hailir started the registration process for its first independently developed novel compound, Fluchlordiniliprole, which is expected to be launched on the market in 2024. Fluchlordiniliprole is a novel amide insecticide that activates the ryanodine receptor in pests, releasing stored calcium ions in cells and causing symptoms such as convulsions, paralysis, and refusal to feed, ultimately resulting in their death. It mainly controls Lepidoptera pests in various crops, demonstrating superior activity against thrips, eggs, and larvae compared with chlorantraniliprole. It has systemic, translaminar, and long-lasting activity and acts mainly through ingestion and contact. 

Spider mites are pests that significantly impact agricultural production and are challenging to control. Hailir initiated early research on spider mite control and identified the highly active compound, FUMANLIUMI, after synthesizing and screening thousands of compounds. This compound has a unique structure and mechanism of action, different from existing acaricides in China. It also demonstrates excellent control effects on spider mite eggs, nymphs, and adults without cross-resistance to existing acaricides. It is an environmentally-friendly acaricide that is safe for common crops such as flowers, vegetables, and fruit trees, with low toxicity risks to mammals, bees, birds, and aquatic organisms. FUMANLIUMI offers the advantages of broad-spectrum control, high efficiency, long-lasting effects, environmental safety, minimal harm to natural enemies, and low resistance potential. It is expected to reduce the frequent and high-dose pesticide use in spider mite control. In December 2023, Hailir obtained the domestic patent authorization for FUMANLIUMI and completed large-scale compound sampling. The product’s registration process is on track for a planned 2025 launch.

Hailir’s latest developed compound, HNP-599, is effective against various categories of pests, such as Lepidoptera, Hemiptera, Thysanoptera, and Acarina, with especially good control effects on several major field pests, such as the stem borer, rice leaf folder, thrips, beet armyworm, two-spotted spider mite, citrus rust mite, melon worm, and flea beetles, while also exhibiting excellent safety for mammals. The group has initiated the registration process for this compound and aims to launch it in 2026.

In addition to new product development for insecticides and acaricides, Hailir is expanding its portfolio for fungicides, herbicides, and nematicides, represented by multiple new compounds, such as 286, 1371, 1274, 1277, 238, 3726, 122, 1011, and 3245. In the next five to ten years, Hailir aims to develop at least eight new insecticide and acaricide products, five fungicides, and five herbicides for the global market, to address various pest and weed issues that are challenging to solve while continuing creating value for global partners and users.

Guiding Guests on a Tour of the Base

AgroPages: Mr. Ge, what is Hailir’s development plan for the near future?

Ge Jiacheng: Hailir’s plan is to diligently cultivate internal strength, promote green development, and enhance sustainable development capacities. 

In the face of the current complex and challenging global political and economic landscape, Hailir has set its guiding ideology for work in 2024 as ″customer satisfaction is the sole criterion for evaluating Hailir’s work.″ It has also established its eight work principles for 2024 as ″ensuring safety and environmental protection, stabilizing operations; focusing on quality and pursuing excellence; building a loyal and responsible team; strengthening collaborations and ensuring execution; striving for customer satisfaction and order acquisition; reducing costs and improving efficiency; refining management systems for meticulous management; fostering innovation to boost momentum.″ These principles clearly outline the focus and direction of Hailir’s work for 2024. Looking ahead, Hailir will prioritize ″cultivating internal strength.″ In addition to excelling in key business areas, Hailir will further enhance the following aspects to fortify its ability to respond to risks and improve its competitiveness:

 (1) Strengthening team building to further enhance team professionalism: Following the guideline of ″building a loyal and responsible team,″ we will strengthen talent development and team building to improve team execution efficiency. Additionally, we will prioritize humanistic care, bolster talent development, and provide specialist training to cultivate a team characterized by integrity, loyalty, and responsibility. This concerted effort will establish a solid talent foundation for effectively serving global partners.

(2) The technical development sector will adhere to lawful and compliant operations, to establish high-standard technical production bases and elevate product quality and factory management to intelligent levels. In 2024, Shandong Hailir, Qingdao KYX, and Qingdao Hengning’s technical factories will continue advancing their transformation projects to address deficiencies in safety, environmental protection, and project management, ensuring the achievement of annual production and management goals. The group will prioritize the accelerated construction of new projects in Hengning, ensuring the safe and stable production of Hengning Phase I, and progressing with Phase II, III and IV projects, as per the plan to bolster the group’s future development and strategic growth.

(3) Accelerating the development of the Fluorine Chemical Business Unit: Hailir set up the Fluorine Chemical Business Unit in 2023 to broaden its business scope. In 2024, Hailir will expedite the establishment of the unit’s technical team, carry out small-scale and pilot trials for two fluorine-containing intermediates, optimize process routes, improve horizontal integration, and continue backing its new projects to facilitate the expansion of business development within the group as early as possible.

(4) Enhancing the formulation production sector: Hailir plans to establish new fertilizer and herbicide production bases, accelerate the capacity expansion of existing solid formulation workshops, and transform the Audis factory into a comprehensive production base with the highest levels of efficiency, safety, and environmental standards for production. Additionally, Hailir will respond actively to the national call to further advance the automation and intelligence levels of formulation production, enhance production efficiency, improve the responsiveness of the supply chain, increase inventory turnover rates, reduce inventory obsolescence risks, and rapidly improve order delivery capabilities.

(5) Enhancing safety and environmental investment for sustainable development: Hailir upholds the core values of "Safety is our sky, Environmental protection is our land, Quality is our life, and Talent is our root" to cultivate a culture that prioritizes safety and environmental protection for the advancement of secure production practices. Embracing DuPont’s safety management culture, the group has established a robust management system and institutional framework to standardize safety and environmental practices and prevent incidents. Moving forward, Hailir will continue to implement national safety policies and advance automation, intelligence, and intrinsic safety in production. Additionally, Hailir will increase investments to drive green transformation, minimize ecological impacts across the product lifecycle, and focus on eco-friendly product development from inception. Through resource and energy conservation efforts, Hailir aims to optimize utilization and significantly reduce its energy consumption. By focusing on technology optimization, green transformation, equipment automation, and information platforms, Hailir is committed to ensuring seamless control. By boosting its waste treatment capacity, odor control ability, and waste resource recycling capability, and continuously improving the production environment, Hailir is striving to achieve true green transformation for sustainable development.

(6) Enhancing quality management to ensure consistent quality: To further improve product quality, Hailir will raise the bar for quality control standards. This will involve securing reliable suppliers for raw materials, additives, packaging materials, and more. Hailir will continuously develop and enforce documentation for product quality standards, strengthen control processes to ensure adherence to these standards, and deliver dependable and consistent high-quality products to meet global market demand.

(7) Enhancing refined management at production bases to boost overall competitiveness: Hailir will take further steps to enhance its refined management at each production base, by focusing on areas such as input-output ratio, energy consumption control, waste production control, material loss rate control, on-site management improvement, equipment utilization rate, asset management, and the professional capabilities of its personnel, to establish stable production bases that ensure reliable supply capabilities, and position Hailir as a globally competitive supplier of agrochemical products.

Hengning Intelligent Manufacturing Control Center

(8) Bolstering technical service efforts, enhancing grassroots services, and improving order delivery capabilities: In 2024, Hailir will continue to advance the ″marketing transformation″ of formulations, which entails supporting technical services teams, controlling crop solution processes, bolstering the team’s professional service capabilities at the grassroots level, and prioritizing service models such as ″one person, one customer″ and ″one person, one county.″ The company will establish core channels and retail outlets, target core users, and concentrate on expanding both channels and product offerings. By implementing standardized action templates, conducting effective experiments and grassroots meetings, enhancing the development of user communication platforms, offering interactive and in-depth services, and promoting localized product application cases, Hailir aims to ensure that each individual can establish and serve standard demonstration field users spanning over 30,000 mu. This initiative is focused on providing services and generating value for channel partners and end-users.

(9) Accelerating the construction of the Teronsun GLP laboratory: This involves obtaining OECD qualifications, reaction risk assessment and test qualifications, and comprehensive qualifications in the pesticide field to facilitate pesticide registration and chemical safety risk assessments. Concurrently, Hailir will apply for qualifications for a drug safety evaluation laboratory, which will be a comprehensive testing and evaluation platform that serves global needs.

(10) Hailir is committed to expanding the industrial chain layout by actively seeking opportunities for mergers and acquisitions in the upstream and downstream sectors of the agrochemical industry, through identifying high-quality targets that possess complementary capabilities, to broaden its scope within the industrial chain. Through the strategic utilzation of the capital market, Hailir aims to establish a strong industrial sector barrier, enhance overall competitiveness, and strengthen its platform advantages. 

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2024 China Pesticide Industry Watch