Yangnong: environmental assessment of Huludao project was published, high capital expenditure brings new growth

Previously, a subsidiary of Yangnong’s public participation in environmental impact assessment was published for the first time. This project is related to an annual output of 15,650 tons of pesticide technicals and 7,000 tons of pesticide intermediates. The company plans to invest ¥4.2 billion in the construction. 

15,650 tons of pesticide technical include: 1,500t/a Imazethapyr, 200t/a Imazamox, 100t/a Imazameth, 5,000t/a Clethodim, 250t/a Sethoxydim, 500t/a Anilofos, 100t/a Pyrisoxazole, 500t/a Diflufenican, 500t/a Paclobutrazol, 3,000t/a Cyhalothrin, 2,500t/a Pydiflumetofen and 1,500t/a Bisamide insecticide. 7,000 tons of intermediates include: 2,000t/a 1-Chloropyridine, 2,000t/a 1,2-Dioxocyclohexane and 3,000t/a 1,2,4-1H-Triazole.

Among them, Pyrisoxazole is an agricultural fungicide with a novel structure, which is jointly developed by Novpharm and Corteva. It has excellent control effect on botrytis cinerea. Novpharm has obtained the official registration of the technical and formulation of Pyrisoxazole.

Pydiflumetofen is a new generation of SDHI fungicides. It was discovered by Syngenta after a 10-year, $350 million screening process of 9,105 compounds. The product, which was launched in Argentina in 2017 and in China in 2020, can effectively prevent wheat scab, sclerotinia sclerotiorum and peanut leaf spot. Global sales of Pydiflumetofen reached $300 million in 2020, and Syngenta expects peak annual sales to exceed $1 billion in the future.

The project plans to invest ¥4.214 billion. The high capital expenditure is expected to bring a new round of growth for the company.

The fourth phase of Youjia will be completed by the end of the year, and the incremental performance will be released next year

The first phase of Youjia Phase IV project, which includes four varieties of Difenoconazole, Mesotrione, Bifenthrin and Fluazinam, has been put into production at the beginning of 2022. The remaining 3,510 tons of Pyrethroids, 2,000 tons of Propiconazol, 1,000 tons of Lufenuron and 500 tons of intermediates are expected to be completed by the end of 2022. It is expected that the production capacity will be released next year to contribute to the increase of performance.

Entering Syngenta industrial chain, the group can open a new development pattern

Syngenta is the largest shareholder of the company. With the deepening of industrial chain coordination, the cooperation between the company and Syngenta will become closer. In the short term, according to the announcement of the company, the company will sell ¥2.8 billion of commodities to Syngenta Group in 2021, and it is expected that the related transactions will reach ¥4.5 billion in 2022, a significant increase of 60% year-on-year. In the long run, Syngenta Group is a comprehensive agrochemical giant of aircraft carrier class. In 2021, the purchase amount of technical in plant protection business is ¥27.4 billion, and the purchasing gold rate of active agents in the recent four years is 16%. With the deepening of cooperation between the company and Syngenta, it is expected to obtain more orders from Syngenta in the future, opening up new development space.