Rainbow invested ¥2.68 billion in technical production and new projects including Clethodim, 2, 4-D and Flumioxazin

 On Jan 31, 2023, Shandong Rainbow released a feasibility analysis report on the use of funds raised by issuing shares to specific objects in 2023. In order to meet the needs of business development and further enhance the capital strength of the company, Rainbow plans to raise funds, which will be invested in 4 technical production projects, including the project of annual output of 8,000 tons of Clethodim, the project of global operation digital management improvement.

The company intends to use the raised funds to focus on the field of technical production, and the relevant technical varieties will be selected and determined according to the development trend of the industry, market demand and other factors. After the implementation of the raised project, the company will further enrich the types of technicals and strengthen the stability of supply, which is conducive to better meet the diversified needs of customers, promote market development.

The two new product projects with Flumioxazin and Clopyralid are selected relatively mature technology and process routes in the industry, and some improvements have been made. These technologies and processes are the advanced technological achievements formed by combining the previous production experience of similar projects and the accumulation of research and development in recent years. It is characterized by green continuous technology.

Through the implementation of this investment project, the company will increase the production capacity of 70,000 tons of technicals, among which the production capacity of 2, 4-D and Clethodim will increase significantly. The implementation of the project can apply the technical achievements of the company in the green clean and continuous aspects of Clethodim and 2, 4-D into actual production, realizing the dual advantages of technology and scale. Its goal is to replace some backward production capacity in the industry through the cost and product quality advantages brought by advanced manufacturing technology and scale effect, and then strengthen the company's voice in the above product field.

An annual output of 8,000 tons of Clethodim project

The total investment of the project is ¥798.04 million, of which ¥733.69 million is planned to be raised for the construction of production units and facilities, with an annual production capacity of 8,000 tons of Clethodim.

The project with 60,000 t/a of new green continuous process 2, 4-D and its esters

The total planned investment of the project is ¥762,367,100, of which ¥72,1,806,200 is planned to be invested to build production equipment and related supporting facilities, so as to form an annual production capacity of 40,000 tons of 2, 4-D technical and 20,000 tons of 2,4-D isooctyl ester.

An annual output of 1,000 tons of Clopyralid project

 The total investment of the project is planned to be ¥182,815,600, of which ¥72,351,600 is planned to be raised for the construction of production equipment and related supporting facilities, with an annual production capacity of 1,000 tons of Clopyralid.

A project with an output of 1,000 t/a Flumioxazin

The total investment is planned to be ¥26,0109,10, of which ¥24,547,500 is planned to be raised for the construction of production equipment and related supporting facilities, with an annual production capacity of 1,000 tons Flumioxazin.

The technicals involved in the fundraising project of Rainbow are the technical varieties that are important to the expansion of many global markets and have scale effect determined by the company based on the medium-term strategic planning. The market development trend is good and the market space is sufficient, which is conducive to the capacity digestion and smooth implementation of the fundraising project.

 In 2020, the global market size of Clethodim is about 380 million US dollars, and the compound growth rate of the market size from 2016 to 2020 is 9.95%. The global market sales volume of Clethodim is growing constantly. With its advantages of low toxicity, high efficiency, low residue and safety, Clethodim has gradually become one of the main varieties of dryland herbicides

2, 4-D is the earliest and largest phenoxy acid ester herbicide, which is used to control weeds in wheat, corn and other cereal crops. The global market size of 2, 4-D in 2020 is about $910 million, with a compound growth rate of 11.68% from 2016 to 2020. Clopyralid is widely used in compounding with other herbicides. Thanks to the successful development of its compound products in corn and other crop markets, its sales have shown steady growth, and the market size has exceeded $200 million in recent years. Flumioxazin is the largest product in the "Other PPO inhibitor class of herbicides". The market size of Flumioxazin is $402 million in 2019, and it is one of the top 20 herbicides in the world.