On 8 June, 2016, Sichuan Hebang Biotechnology Co., Ltd. (Hebang
Biotechnology) announced its plan to invest USD27.10 million (RMB178.55
million) in constructing a 2,000 t/a cycolxylidin TC and 5,000 t/a
10% cycolxylidin DP project. The new projects is planned to be built
in Niuhua Town, Wutongqiao District, Leshan City, Sichuan Province and to be
completed in one year.
Source: Baidu
"We have obtained the exclusive patent right on cycolxylidin. Thus, we
made this investment after comprehensive research and analysis on the insecticide
market and deliberate consideration on our company's reality," disclosed
Hebang Biotechnology, "This project will be favorable for extending into
innovative business gradually, strengthening the core competence, improving
anti-risk capability and hunting for new profit growth."
According to Hebang Biotechnology, the company is the exclusive possessor of
patent for invention and pesticide registration certificate on cycolxylidin. This
new nicotinic insecticide enjoys the following advantages:
1. Promising prospect with its broad spectrum, new chemical structure,
environmentally-friendliness, low-toxicity and high efficacy, given the great
importance attached to safety of agricultural produce and land pollution at
present.
2. Outstanding developing prerequisite: no disorderly market competition as
other traditional pesticides, thanks to the company's exclusive patent right.
3. Lower production costs than traditional nicotinic insecticides.
In addition, Hebang Biotechnology disclosed that they self-funded this
cycolxylidin technical and formulation project, USD8.13 million – RMB53.56
million (30% of the total investment) from the company itself and the rest from
financial institution loans. The project is estimated to generate:
-
Annual after-tax profit: USD12.62 million
(RMB83.12 million)
-
Internal rate of return: 59.95%
-
Payback period (static): 2.76 years
Notably, Hebang Biotechnology, one of the largest Chinese PMIDA producers, has
the largest PMIDA production capacity and a complete supply chain. Prior
to this, it successfully acquired 51% shares in S.T.K.'s biopesticide sector for
USD90 million (RMB54.53 million), which promoted the company's transformation
and made it among one of the global advanced biopesticide and
bioveterinary producers.
This new 2,000 t/a cycolxylidin TC and 5,000
t/a 10% cycolxylidin DP project not only helps the company develop
new pesticide technology, but also complete its layout in high-end agrochemical
market.
This article comes from Insecticides Chian News 1608, CCM
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Tag: pesticides insecticides