Some insiders said that small pesticide enterprises are facing multiple troubles. Due to aging products, aging equipment, backward concept and abandoned by the policy, the small pesticide enterprises have uncertainty to perceive their future.
The pesticide industry remains in the doldrums since 2008. In such a hostile environment, many listed companies were at a loss or decline in profits. What's more, it is more difficult for small pesticide enterprises to survive. In recent two years, many domestic small enterprises tried their best to survive in the ways of selling assets, leasing technology & equipment and seeking investors. However, they are difficult to be acquired or invested even if they have valuable intangible. The reasons leading this result are that their products are uncompetitive, homogeneous and many of them are endangeredeliminate and withdraw from the market.
According to National Industrial Policy announced by China Government, the number of pesticide companies will reduce by 30% before 2015. And the strict environmental protection requirements make the pesticide enterprises’ pollution control cost become more and more high. Currently, the number of domestic pesticide enterprises is about 2,000, which means, under the guidance of National Industrial Policy, most of the small pesticide enterprises' living space will be smaller and smaller in the future.
(Guangzhou China, October 5, 2011)
Source: CCM International