CCM: Hebang Biotechnology to launch 2000 tonnes annually cycolxylidin TC and 5000 tonnes annually 10 percent cycolxylidin DP project 09-02-2016

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


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