Changqing Agrochemical to invest in new imidacloprid production line

Date:04-23-2012

Changqing Agrochemical plans to make an investment of RMB 68 million Yuan to establish an imidacloprid (TC) production line with annual production 1000 tonnes, to be constructed in a period of 9 months starting from April 2012 until December 2012. The project upon its completion will bring an additional income of RMB80 – 100 million Yuan per year with a net profit of RMB 9.60 – 12 million Yuan.

The new imidacloprid production line is intended to supersede the existing 1000 tonnes/year imidacloprid production line built in 2007; the new project will introduce an upgrade of the 2-chloro-5-chloromethyl pyridine synthesizing method, especially an innovative chlorination addition reaction and cyclization reaction. The new process and new equipment applications will enhance the automation capability, which enables reduction of costs of material, labor, energy and waste water treatment, resulting in a reduction of unit cost of RMB 4200 Yuan.

After the new project becomes operational, existing 1000 tonnes/year imidacloprid production will be closed down for a technical renovation at a minor investment, to be ready for production of other pesticides according to market demand.

As one of China’s pesticide leader, Changqing Agrochemical’s sales reached RMB 1.00 billion Yuan in 2011, to be expected to reach RMB1.25 billion Yuan in 2012 (AgroNews 2012-04-02); its recent quarterly report reveals a sales income of RMB297 million Yuan and a net profit of RMB35 million Yuan, respectively 28.67% and 17.39% up year on year.

In addition, the 500 tonnes/year fenoxanil project of Changqing Agrochemical has been put into production as planned.