Zhejiang Province was the second pesticide production base in China, but its slow development in recent years has resulted in relocation of more and more pesticide companies from Zhejiang Province to other provinces. High production cost in Zhejiang is one of the reasons.
According to CCM, over 15 pesticide companies have relocated part of their pesticide production capacities, while others are planning to do so in the near future. Leading pesticide companies in Zhejiang have all set subsidiaries in other provinces, such as Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), Zhejiang Shenghua Biok Biology Co., Ltd. (Zhejiang Biok), Zhejiang Heben Pesticide & Chemicals Co., Ltd. (Zhejiang Heben), Zhejiang Jinfanda Bio-chemical Co., Ltd. (Zhejiang Jinfanda), etc.
With increasing pressure from environmental protection and land cost, it is estimated that more pesticide companies in Zhejiang Province will relocate production capacities to other provinces.
The relocation is expected to bring more chances to further development. In addition, pesticide manufacturers can take this opportunity to upgrade production technology and optimize product portfolio, in order to strengthen competitiveness.
At present, Zhejiang has dropped to the third pesticide production base in China after Jiangsu and Shandong. There are 84 pesticide production companies (including 51 technical pesticide companies) in Zhejiang by the end of 2010, decreasing from 92 by the end of 2009.
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