Summary:
As the construction of the phase I program of Shandong Hengdong's
48,000 t/a high-end and green chemical industrial project has progressed
smoothly, the phase II program—including the building of 1,000 t/a
chlorantraniliprole TC production capacity—is now high on the company's
agenda. Moreover, in the future, the company will further construct
4,000 t/a chlorantraniliprole TC capacity and large-scale
cyantraniliprole TC capacity in later phases.
In
Oct., CCM learned from Shandong Hengdong Biotechnology Co., Ltd.
(Shandong Hengdong) that it had put the construction of the phase II
program of its 48,000 t/a high-end and green chemical industrial project
high on the agenda. As per the company, it is actively preparing for
all the necessary formalities to kick start the construction. In this
phase, 1,000 t/a chlorantraniliprole TC production capacity will be
built. Besides, it has planned another 4,000 t/a chlorantraniliprole TC
capacity in later phases.
The
48,000 t/a high-end and green chemical project is a key industrial
project Shandong Hengdong invested. The whole project will be built in
the Chemical Industrial Park of Pingyuan Economic Development Zone,
Pingyuan County, Dezhou City, Shandong Province. The park is a
provincial-level accredited chemical park. Considering factors such as
the company's development plan, market dynamics and the progress of
production process design, the overall project has been divided into
several phases. Details of products planned are as follows:
Phase
I: Building production lines of 5,000 t/a malathion TC, 5,000 t/a
dimethoate TC, 1,000 t/a lufenuron TC, 500 t/a hexaflumuron TC and 500
t/a diflubenzuron TC. These lines are currently under construction;
Phase
II: Building production lines of 1,000 t/a chlorantraniliprole TC and
13,000 t/a glufosinate-P TC. As regards the glufosinate-P capacity,
3,000 t/a will serve sales purpose, while the rest 10,000 t/a will be
reserved for the production of downstream formulation products, with
matching 24,626 t/a capacity for glufosinate-P 40% AS;
Later
phases: Building production lines of 5,000 t/a diquat dibromide TC,
5,000 t/a diquat dichloride TC, 4,000 t/a chlorantraniliprole TC, 1,000
t/a cyantraniliprole TC, 1,000 t/a fluopicolide TC, 1,500 t/a anilofos
TC, 2,000 t/a pyroxasulfone TC, 1,500 t/a methyl 3-mercaptopropionate
and 1,000 t/a benoxacor.
Shandong
Hengdong was established in March 2022 and funded by Shandong Luba
Chemical Co., Ltd. (Shandong Luba) and Shandong Luba's wholly-owned
subsidiary Dezhou Luba Fine Chemical Co., Ltd. (Dezhou Luba), with
Shandong Luba holding 60% equity in Shandong Hengdong and Dezhou Luba
40% equity. Shandong Hengdong mainly engages in pesticide business. It
should be reminded that in July 2023, Shandong Hengdong acquired 51%
equity of the pesticide enterprise Guangxi Jintudi Shengda Biotechnology
Co., Ltd., which is located in the Qintang Industrial Park New Material
Science and Technology Park, Guiguang City, Guangxi Zhuang Autonomous
Region.
It
can be seen that Shandong Hengdong has planned an overall 5,000 t/a
chlorantraniliprole TC capacity, and thus the company is determined to
join in the chlorantraniliprole rush in Chinese market. It is well known
that chlorantraniliprole is currently the most coveted off-patent
insecticide in China's pesticide market. A batch of Chinese pesticide
enterprises have launched their chlorantraniliprole TC projects, and
some have even built up the production lines and put them into operation
by now. In the near future, more chlorantraniliprole TC capacity will
turn active, and the supply of the product will expand quickly in China.
As a result, competition in this market will become stiffer.
Apart
from the chlorantraniliprole capacity, the company has also planned
1,000 t/a cyantraniliprole TC capacity. Cyantraniliprole, with a
chemical structure highly resembling chlorantraniliprole, has many good
properties. Both products were developed by E. I. du Pont de Nemours and
Company, Inc. (DuPont), and the company built all-around patent
portfolios for them. In 2017, DuPont's crop protection business
(cyantraniliprole and chlorantraniliprole products included) was
divested to FMC Corporation, so all the related patents concerning
cyantraniliprole and chlorantraniliprole were transferred to the latter.
The
core compound patent of cyantraniliprole will go off-patent from Jan.,
2024 in China as well as in many countries and regions across the world.
With the approaching expiry of the compound patent, the time for fast
development of cyantraniliprole market is about to come in China. By
then, however, domestic pesticide companies should avoid infringements
of other cyantraniliprole patents still under protection in their
pursuit of cyantraniliprole capacity.
Source:CCM
More information can be found at CCM Insecticide China Monthly Report.
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