Interview: Jiangsu Lanfeng Biochemical, to be the leading player in phosgene –based agrochemicals

Date:03-10-2011

It is in the new year of 2011 at a time for Jiangsu Lanfeng Biochemical Co., Ltd.’s (Lanfeng) landing on Shenzhen Stock Exchange for one month (Agronews 2010-12-06), Lianghuazhong, president of Lanfeng, talk about Langfeng’s history in an exclusive interview with Agropages.

Lanfeng Biochem, former known as state-owned Xinyi pesiticides factory, has been engaged in manufacturing and marketing of fungicides products such as thiophanate-methyl, carbendazol which synthesis from phosgene. In transformation from planned economic system to market economic system, Lanfeng has successfully made significant progress by implement its strategy of developing the international market. After its international entrance and quality upgrading, the company built up new facilities in Lanfeng Industrial Park in 2006, and made its overall relocation into the new Industrial Park, which covers an area of 3000 mu.

In addition to its pesticides manufacturing facilities and ancillaries such as thermal power plant, chlor-alkali plant, other workplaces for pesticide registrations and trademarks affaires will be located into this industrial park, which will make Lanfeng a comprehensive player in R&D, manufacturing and marketing of pesticide products. The three phase planned construction of Lanfeng Industrial Park has completed its first-stage project on 1000 mu’s land building, and the rest the construction is expected to be accomplished in next five years. With Lanfeng’s successful listing in Shenzhen, Mr. Liang is quite confident about Lanfeng’s future as the advert of a high-speed development stage.

Mr. Liang takes proud of Lanfeng’s advantage of phosgene production when he told Agropages about its future direction. Phosgene is a valued industrial reagent and building block in synthesis of pharmaceuticals and other organic compounds. Due to its reactive characteristics, there are high barriers to entry in producing phosgene. However, Lanfeng become a national appointed phosgene producers with its over 30 years’ experiences in phosgene production and fully DCS equipped facilities. As a top 3 phosgene producer in China, the annual 10,000 tons’ capacity will give Lanfeng an edge on the cost of raw materials. There are considerable advantageous products in Lanfeng’s portfolio made from phosgene, consisting of thiophanate-methyl, with annual output of 5,000 tons; carbendazol, with annual output of 11,000 tons; benomyl, with annual output of 2,000 tons; and hexazinone etc. Thus, Lanfeng will make use of its phosgene production through more positioning on phosgene-derivated products.

Lanfeng has achieved annual sales of 900 million Yuan in 2010, of which 60% from overseas markets. Mr. Liang explained its marketing strategy of strengthening the South America markets, entering into and exploring the Europe and North America markets. 5 BATCH reports available for some products would speed up the entries for customers in their target markets. Domestically, Lanfeng will increase its market share in formulation products by M&A activities on some formulation producers.

Mr. Liang shared with Agropages on international cooperation. In order to survive the internationalization, one must able to assimilate the newly introduced technology. Therefore, Lanfeng attaches great importance to R&D investment and new product promotion. Second, as HSE has been paid to more and more attention gradually, a sound management system will plays an important role in seeking international partners. Lanfeng has already formed partnerships with FMC, OTSUKA, etc. on contract manufacturing and products developing.

Dedicated in pesticides industry for almost 30 years, Mr. Liang became a mentor in his sector, and his openness and vigorousness are evident through his animated discussions about the stories and competitions in this field. As a source of progress, competition makes good understand of oneself and his rivals. For this reason, an agrochemical company should rationalize its portfolios and diversify its market channels.

In his perspective on the development of China pesticide industry, Mr. Liang favored the M & A strategy adopted by ChemChina and Sinochem and he hope that the Chinese multinationals could be evolved in next five years. He was also optimistic about the private companies, especially the newly-listed agrochemical companies who will gain advantage through their financing competence. He told Agropages that the raised 540 million Yuan is to fund Lanfeng’s production projects: the 8,000 tons per year’s acephate facilities; the 2,000 tons per year’s cypermethrin facilities; 800 tons per year’s beta-cypermethrin facilities; 1000 tons per year’s permethrin facilities; the construction project of 50 tons per year’s lambda-cyhalothrin facilities; 4000 ton per year’s diuron technical facilities; 500 tons per year’s PPDI and 1000 tons per year’s PTSI projects; construction project of technical research center.

Finally, Mr Liang revealed Lanfeng’s ambitions of becoming a top 10 Chinese pesticide company within five years and a worldwide leading phosgene–derivated pesticides producer.

About LANFENG BIO-CHEM

LANFENG BIO-CHEM is a large-scale agrochemical enterprise who was reformed from Jiangsu Suzhou Chemical Group Xinyi Agrochemical Co., Ltd. Company products range include fungicides, insecticides, herbicides and intermediates related to phosgene. It is very popular in domestic and international market for our products: carbendazim, Thiophanate Methyl, Benomyl, Propamocarb,Hexazinone, Iprodione, Metazachlor and Intermediates etc. LANFENG BIO-CHEM is the No.1 production base of Thiophanate Methyl Technical in China. The production capacity of intermediate products related to phosgene is up to 50 thousand tons per annum. All products have passed ISO9001, ISO14001,OHSMS18001. LANFENG BIOCHEMICAL possesses 5-batch Reports at GLP laboratory to Propamocarb, Hexazinone, Iprodione, Metazachlor, Thiophanate Methyl and carbendazim.

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