BSM: Pendimethalin will reach 18,000 t/a after expansion, combining the advantages of Generic to explore the Asian, African and Latin American markets

On June 14, 2024, Shaoxing BSM accepted the survey of specific objects, and the chairman and secretary of the board of directors of BSM attended and replied to the relevant questions of investor concern, details are as follows:

Q: What is the current production capacity of Pendimethalin? Is the company's future business development planned?

A: The current global consumption of Pendimethalin is nearly 50,000 tons per year, mainly in the Northern Hemisphere. In January 2024, Europe officially banned the S-metolachlor herbicide, and the development space of Pendimethalin further expanded. At present, the company has an annual production capacity of 12,000 tons of Pendimethalin, and is promoting the annual production expansion project of 6,000 tons of Pendimethalin, which is expected to reach 18,000 tons per year after the expansion.

In the future, the company will further deepen the cooperation with existing customers, while combining the advantages and influence of Generic in developing countries in Asia, Africa and Latin America, and actively expand the Pendimethalin market in these countries and regions.

Q: Recently, the price of Pendimethalin has decreased. How does the company view the impact of price on its competitive advantage?

 A: The company has completed the whole industrial chain layout of Pendimethalin, and realized the self-production of all intermediates. Relying on the complete Pendimethalin industry chain, the company's product price and market strategy can be flexibly adjusted to follow the industry rhythm. Recently, the Pendimethalin market has gradually entered the off-season, and the product price has gradually returned to the equilibrium price. The price change of technical products is conducive to the establishment of the enterprise's own moat, which can make the company maintain and strengthen the competitive advantage in the market competition.

Q: What is the current production and sales status of the company's Carbon 5 phase I project? 

The company's "annual output of 8,500 tons of Pentanone series green new material project" has been officially put into operation, and at present, all production links have been opened, the device is running steadily, the product quality is qualified, the production condition is good, and the sales volume is gradually enlarged. The company will adjust the product structure reasonably according to the characteristics of the device and market changes, and gradually sign long orders with many major customers downstream to achieve stable shipment.

Q: Can you introduce the future development layout of the company?

A: With the advantages of advanced technology, large-scale production, continuous R&D and innovation, excellent product quality, the company has established a good brand image in the market, established a stable customer base, and achieved steady and rapid development. In the future, the company will continue to adhere to the development concept of "industry focus, technological innovation, environmental protection, standardized operation", and vigorously promote the research and development innovation and market effective application of environmentally friendly pesticides. In the future, the company will further deepen the cooperation with existing customers, while combining the advantages and influence of Generic in developing countries in Asia, Africa and Latin America, and actively expand the market of Pendimethalin in these countries and regions.

The company's carbon Five phase I has been successfully put into production, the future company will rely on the carbon Five phase I project, the development of products in the downstream pesticide intermediates, high-end new materials and other fields of import substitution applications, to achieve the extension of the development of multiple industrial chains. Carbon five chemical products and derivatives are widely used, and there are dozens of products that can be developed downstream and huge import substitution market space.

Q: the future industrial chain layout involves downstream customers in multiple application fields, will there be new challenges in sales?  

A: The future industrial chain layout of the company will continue to extend downstream by relying on the carbon Five phase I project, and actively explore and plan the downstream carbon five derivative product market. The products planned by the company are basically standard products, which can enter the customer supply chain through the relevant technical quality inspection report and test quality, and are easier to introduce into the market than non-standard products.

The company will continue to optimize the product structure according to the evolution of the downstream market, strengthen the overall market planning and strategy, and achieve effective coordination of production and sales.