• Under the Storm of Environmental Protection, How Agrochemical Corps Survive in the Futhre?

    release date:2018/8/27 16:23:19 Views:319

    I considered many times and finally decide to use ‘Survive’. As our "Pesticide Market Information" media combined with Nantong Chemical and Pharmaceutical Association and Nantong Pesticide Association in the process of visiting some pesticide chemical companies in Nantong area, found that the current pesticide companies are indeed too difficult to survive.

    The environmental protection storm is getting worse and stronger, how will the pesticide companies stand in the future?

    Three years ago, the also visited a pesticide company in the Dongyangkou Chemical Industrial Park. It coincided with the implementation of the most stringent environmental protection law, and the company faced transformation and upgrading to adapt to the corresponding policies. But now? Looking back, as the environmental storms in the past few years have become more and more fierce, the "most strict" at that time seems to be nothing. However, even if enterprises strive to rectify and meet environmental protection requirements, this is still the case. Many companies are still restricted by some policies, or closed, or transferred, and can survive.

    Where to survive? How to survive? How to establish a foothold in the future of pesticide companies

    2018 is the key year for the special action of chemical pollution remediation in the Yangtze River Economic Belt, and it is also the year of the ups and downs of the chemical park along the Yangtze River. The chemical companies along the coast are frightened. Not only are the chemical companies within one kilometer relocated, the of this year’s visit to Jiangsu Baoling Chemical Co., Ltd., within one kilometer and within three kilometers, was also very uneasy during the interview. I am afraid that when the country introduces policies again, they will not be able to survive here. At present, enterprises are also actively looking for suitable parks to find a way out, and they are not prepared to go.

    And away from the Yangtze River, can companies living in national chemical parks sit back and relax? In fact, when visiting the Zhongyi Chemical Co., Ltd. in Dongyangkou Chemical Industry Park, Zhu Feng, the deputy general manager of the company, said that the park is now very strict with the company's management and control, and is actively eliminating high-pollution, high-energy enterprises. By 2020, Close more than half of the business. The park has also formulated four standards: the first safety red line cannot be touched; the second environmental protection must reach the green and blue indicators; the third enterprise must be completely converted into the DCS operating system; the fourth enterprise must also reach a certain economic per mu of GDP. index. These four regulations will immediately remove more than half of the enterprises, and regardless of the cost of safety and environmental protection, the production equipment will all be replaced by the DCS operating system at once, which is not the ability of every enterprise to complete. Not to mention the standard of GDP per mu. Now, in this economic downturn, business is hard to do every day. It is not easy for enterprises to survive, let alone complete the indicators.

    But it is difficult to do and do it. Just like the general manager Zhu said, in the future, it will be better for quality companies to survive better and better, and only such strict requirements can promote the transformation and upgrading of enterprises, because we are facing more than domestic Competitors, foreign companies are also constantly reorganizing and reorganizing to build a stronger pesticide chemical empire, and only by constantly reminding themselves of their strengths can they meet the greater challenges of the future. The big waves and sand, the survival of the fittest, although listening to very cruel, but also the only way for the development of China's pesticide industry.

    High prices do not mean that profits are high, and the tight supply of raw materials seriously restricts production.

    As we all know, as the environmental storm has become more and more fierce, this year's pesticides have soared regardless of the original drug or the price of the preparation. It is reasonable to say that pesticide companies should be happy to spend a lot of money. But is the real fact so?

    In the interview, the heads of many companies told the that the environmental storm has indeed shut down many informal chemical companies, which helped them to eliminate the market and reduce their competitors. However, those original drug manufacturers that rely heavily on intermediates are also affected accordingly. Nowadays, raw materials are difficult to buy, which has become the first problem for all pesticide companies.

    Zhu Feng, deputy general manager of Rudong Zhongyi Chemical Co., Ltd. said that due to the environmental storm, the chemical parks in Lianyungang and other places have been discontinued, and the raw material suppliers of Zhongyi Company are among these parks. Therefore, “the clever woman is difficult to be without rice” The production of the public has been greatly affected. For example, one of the company's products, the original pyridoxine, has been good in production and sales, and can produce 500 tons/year at full capacity. However, due to the limitation of raw materials, it can only produce 400 tons/year, which greatly affects the company's performance. This is especially true for other products. The company's production capacity is only half of last year. The sales so far this year are 50 million, compared with 80 million in the same period last year. Zhu estimated that the domestic environmental storm will continue to ferment, and this situation will continue.

    Nantong Jinling Agrochemical Co., Ltd. is a preparation manufacturer. Their general manager Chen Aidong mentioned that the price of the original drug has been rising in an uncontrolled manner. For example, the company has been producing the original drug Isoprofen, which is used in large quantities, the price two years ago. It is 30,000/ton, and the price last year was 70,000/ton. This year's price soared to 130,000/ton. This directly leads to difficulties in the survival of the preparation companies, and the profits are very thin, but even if the price is so high, the goods may not be available, and now the enterprises often face the situation of being out of stock. Moreover, the rise of the original drug will inevitably lead to an increase in the price of the preparation product, but the dealer may not be able to accept such a price, and the company has lost several businesses.

    So how should it be cracked? Companies also have different ways to deal with them, such as Jiangsu Baoling Chemical Co., Ltd. to achieve self-support for their main products, metalaxyl and profenofos, reducing the impact of upstream units. This may be the most effective and once-in-a-lifetime approach, but not every company has the ability to implement it. Also, as Rudong Zhongyi Chemical Co., Ltd. began to import raw materials to foreign countries, the price of foreign countries is relatively higher, but it is better than the inability to produce. These are all ways that there is no way. Just like what Zhu said, "It’s hard to be a good woman." What is the use of your own business? Without raw materials, enterprises can't produce normally. These problems are not only the enterprises themselves to overcome, but whether the state can also have some corresponding policies. This is worthy of attention.

    Projects are not approved, many companies are looking for new ways and development methods

    At the same time, the also learned in the interview that due to the current 263 action, as well as the high pressure of safety and environmental protection, many pesticide companies are now facing the embarrassing situation that new projects can not be approved. However, if enterprises need to develop, they must innovate and new products cannot Putting into production, the production capacity of old products is not released, which seriously restricts the development of enterprises. I believe that such a situation should not only occur in pesticide companies in Nantong, but also in pesticide companies in Jiangsu, Anhui and Shandong.

    Faced with such a situation, many companies have now moved to the idea of moving out. Some time ago, the Pesticide Market Information reporter visited several major chemical parks in Liaoning, and the Jilin Economic and Technological Development Zone, which came to Nantong to attract investment. These places are actually a good place to transfer the battle front. But this is what the has been thinking about. I have really driven away the agrochemical enterprises. Is it a good thing for the future development? It is true that there is indeed pollution in agrochemical enterprises, but there is no need to “talk about discoloration”. Our food, clothing, housing and transportation are inseparable from chemical industry, especially pesticides. “People eat food for the sky”, there is no pesticide how to feed so much in China. population! Although the state has always banned a one-size-fits-all approach, in the opinion of the , it is not a one-size-fits-all approach to not approve new projects and not to expand production.

    Every time I walk into the company, I have a different experience with the person in charge of the company. As a reporter, what I can do is to record more and convey the voices of these companies and tell more people. When writing this manuscript, the coincided with Shandong, Hubei, Jiangsu, Zhejiang, Shanxi, Beijing-Tianjin-Hebei and other places have successively introduced rectification, production restriction, shutdown and retention programs for chemical parks and chemical plants. In August, there seems to be no weakening trend in environmental protection. During this period of time, environmental protection policies have been constantly changing. At the same time, this means that a new round of chemical industry reshuffle in the second half of 2018 is about to begin! The sincerely hopes that more pesticide companies will survive this environmental storm, and I believe that enterprises that have been reborn will be able to go further.