Green and innovation-driven development: The sustainable transformation practices of Fuhua Chemical

Date:09-19-2024

A leading agrochemical company boasting rich mineral resources

Fuhua Tongda Chemical Co., Ltd. (hereafter referred to as "Fuhua Chemical") was established in 2007 and is headquartered in Leshan City, Sichuan Province. 

With nearly two decades of experience in chemical production, Fuhua Chemical has evolved into an international comprehensive chemical manufacturer and a key player in the global agrochemical industry, ranking among the ″Top 20 Global Agrochemical Companies″ and ″Top 10 Agrochemical Companies in China.″

The company’s primary business areas include the production of glyphosate, fine chemicals, and basic chemicals. It possesses abundant mineral resources, including 90.4 million tons of salt mines and nearly 73 million tons of phosphate mines, alongside associated lead-zinc fluorite. This results in a mining capacity of four million tons per year and a chemical production capacity of approximately 3.5 million tons, which includes 200,000 tons of agrochemicals. Fuhua Chemical has also established a cogeneration unit that generates 237.5 MW of electricity and supplies around 6.72 million tons of steam annually, thus ensuring stable energy support for its production processes.

Capacity and quality advantages highlight company’s international competitiveness

Fuhua Chemical leads globally in glyphosate production, with a technical production capacity of 180,000 tons, ranking third worldwide and second domestically. The company excels in the domestic market for chloromethane and dimethylphosphite. It holds the top position in Southwest China for ion membrane caustic soda, glycine, and phosphorus trichloride, underscoring its strong presence in various market segments.

Fuhua Chemical has developed long-term partnerships with several reputable agrochemical firms in terms of international collaboration. As a core supplier for major global agrochemical companies, it has formed strategic alliances for end-product development and market channel construction. These partnerships enhance Fuhua Chemical’s international influence and drive continuous compliance and product quality improvements.

In recent years, Fuhua Chemical’s business performance has shown robust growth, particularly in expanding overseas markets. Its export products, primarily plant protection products like glyphosate and glufosinate technicals and formulations, are distributed across major agricultural regions in North America, Latin America, Europe, and Australia/New Zealand. In 2022, the company achieved export revenue of US$1 billion, capturing about 20% of the global market share and ranking first in global technical exports, reflecting its international competitiveness.

The Stereoscopic Warehouse of Fuhua Chemical

Innovation-driven development: Integrated industry layout and diversified growth

Fuhua Chemical’s growth strategy is centered on innovation, focusing on efficient resource utilization and environmentally friendly production through a vertically integrated circular economy industrial chain. Over the past 20 years, the company has developed this integrated chain from mineral resources to chemical intermediates to end products, successfully recycling elements such as chlorine, hydrogen, phosphorus, and sodium. Fuhua Chemical’s consumption metrics for major raw materials and energy are industry-leading, yielding substantial economic, environmental, and social benefits. 

The Integrated Industrial Park of Fuhua Chemical’s New Materials

As China’s bio-breeding industry rapidly advances, Fuhua Chemical capitalizes on industry opportunities, demonstrating strong momentum in bio-breeding herbicides. On March 29, 2024, the first batch of bio-breeding crop herbicide products in China received official registrations, marking the commencement of their legal use. As a frontrunner in the glyphosate sector in China, Fuhua Chemical quickly responded, leveraging its extensive technical expertise to secure a place on the registration list for glyphosate-based bio-breeding herbicide products. The company is also increasing its investments in domestic and international registrations, further solidifying and expanding its market share in the bio-breeding herbicide domain. This proactive approach has allowed Fuhua Chemical to maintain its leadership in an increasingly competitive landscape.

Simultaneously, Fuhua Chemical strategically positions itself in the new materials sector, which is crucial for its overall development. The company has invested RMB22 billion in Wutongqiao District, Leshan City, to establish the ″Fuhua New Materials Integrated Industrial Park,″ collaborating with world-class chemical firms such as Evonik from Germany, Clariant from Switzerland, and HighChem from Japan. This initiative researches and produces high-end chemicals for applications like power batteries, optoelectronic displays, and semiconductor integrated circuits. This strategic positioning not only broadens the company’s business scope but also establishes a robust foundation for future growth in emerging fields.

Leading Chinese agrochemical companies in green development and low-carbon transformation 

Fuhua Chemical consistently prioritizes green development as one of its core business philosophies. In the agricultural sector, the company actively develops environmentally friendly pesticides and fertilizers, aiming to mitigate the environmental impact of agricultural production.

Fuhua Chemical has implemented numerous concrete measures for low-carbon development. The company continually enhances its clean production capabilities through technological innovation and process optimization, increasing efficiency while reducing energy consumption and pollutant emissions. Fuhua Chemical has implemented several energy-saving technology transformation projects to improve energy efficiency, achieving industry-leading energy consumption levels in glyphosate production and domestic leadership in specific energy consumption for caustic soda production. Regarding waste management and resource recycling, the company has established a comprehensive waste treatment system and achieved effective resource utilization through a circular economy model. 

Fuhua Chemical’s accomplishments in green development are remarkable. In 2023, the company obtained certification for its energy management system, with annual waste gas emissions and wastewater discharges representing approximately 30% of the permissible limits under its pollution discharge permit, resulting in a carbon emission compliance profit of 68,000 tons. The company also calculated the product carbon footprint of its glyphosate products and contributed to formulating carbon emission standards for glyphosate, providing critical insights for the industry’s low-carbon initiatives.

In July, Fuhua Chemical, alongside seven leading domestic agrochemical companies, co-founded the first low-carbon alliance in the plant protection industry. This initiative represents a significant advancement in exploring the ″carbon peak and carbon neutrality″ strategy within the industry. The alliance aims to promote clean production technologies and low-carbon innovations through collaboration and resource sharing among its members, facilitating the plant protection industry's green, low-carbon, and sustainable development.

The China Crop Protection Low Carbon Alliance established in China

Continuously advancing towards the vision of ″Better Chemistry for Better Life″

Looking ahead, Fuhua Chemical will adhere to the ″dual circulation″ development strategy, strengthening its domestic market and expanding its international footprint. The company plans to continue increasing its R&D investment, advancing digitalization and intelligent manufacturing upgrades, and continuously enhancing production efficiency and product quality.

As a frontrunner in the industry, Fuhua Chemical is committed to providing more efficient and environmentally friendly solutions for agricultural production through technological innovation and green development. The company is also actively fostering the development of the low-carbon alliance in the plant protection industry, leading collaborative efforts towards sustainable development. Fuhua Chemical will expedite the establishment of the ″Fuhua New Materials Integrated Industrial Park,″ in the new materials field. It will strive to achieve breakthroughs in high-end chemicals for power batteries, optoelectronic displays, and semiconductor integrated circuit applications, thereby infusing new vitality into the company’s long-term growth.

With its innovation-driven and green development strategy, Fuhua Chemical is at the forefront of guiding the agrochemical industry toward a more sustainable future. Through relentless efforts in technological innovation, industrial upgrading, and green development, Fuhua Chemical is making significant contributions to the high-quality advancement of the agrochemical industry in China and globally, continuously progressing toward the vision of ″Better Chemistry for Better Life.″

This article was originally published in AgroPages magazine 2024 Latin America Focus. Download to read more.