China丨Rainbow intends to adjust the capital raised for the construction of a 25,000T/A Glycine route Glyphosate production facility

Rainbow announced that the company intends to change the raised capital investment project "annual output of 20,000 tons of 2,4-D, 2000 tons of Clethodim, 500 tons of Quizalofop-P-ethyl project" to continuous technical improvement project of 25,000 T/A Glyphosate". After the adjustment of this project, the investment amount of the project is ¥572 million, an increase of ¥233 million compared with the original raised capital. Among them, it is planned to use the raised capital of ¥339 million, and the remaining shortfall will be made up through its own funds.

The announcement expressed that Glyphosate is the world's most used herbicide. Since the beginning of 2021, the price of Glyphosate has continued to rise, and remained relatively high, due to the imbalance of supply and demand structure, the rise of upstream raw materials and other factors. Glyphosate products are one of the main products of the company, but the company's own Glyphosate production line is temporarily suspended because of production cost, production process and other factors, and the Glyphosate technicals are purchased from others. In order to improve the stability of the technical supply chain and ensure the delivery of these orders, Glyphosate's low-cost is imperative for the stability.

The implementation of Glyphosate technology reform is also a concrete embodiment of the company's strategy of focusing on innovation and R&D to support advanced manufacturing.

Although the company has not produced this technical for a long time, as one of the important technical varieties in the early development of the company, the company has never stopped the research, development and improvement of this product, and has always been committed to building a continuous whole process of Glyphosate production device. Through process enhancement to improve product yield and advanced technology to reduce waste production, the company's Glyphosate process achieved high results in energy consumption, device stability, safety, environmental protection and other aspects. In addition, different from the IDA process, Glyphosate process is restricted by the supply of raw material PMIDA. The raw materials used in Glycine process are mostly basic chemical raw materials, which are in sufficient supply in the market.

Based on the above factors and the company's current business development strategy and layout, the Company intends to change the investment project of the raised funds in order to safeguard shareholders' rights and interests and improve the use efficiency of the raised funds after careful study and demonstration. The annual output of 20,000 tons of 2,4-D, 2000 tons of Clethodim, 500 tons of Quizalofop-P-ethyl project" was changed to "annual output of 25,000 tons of Glyphosate continuous technical improvement project", that is, the original two sets of different routes of Glyphosate were merged and the technology was improved to construct a 25,000 T/A Glycine route Glyphosate production equipment.