Chlorantraniliprole TC capacity construction, next on Shandong Hengdong's agenda 10-25-2023

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.
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    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.


    About CCM:

    CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.

     
    For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.



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