Ningxia Hanrun to build large-scale clethodim TC capacity

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Publish time: 4th November, 2022      Source: CCM
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    Summary: Ningxia Hanrun has decided to construct 8,000 t/a clethodim TC production capacity, extending its reach to the downstream of its main product 5-[2-(ethylthio)propyl]-3-hydroxy-2-propionyl-2-cyclohexen-1-one, a key intermediate for clethodim production. This also means that its parent company Weifang Rainbow will expect larger capacity of this herbicide in the future.   

  

    Late Sept., Ningxia Hanrun Biotechnology Co., Ltd. (Ningxia Hanrun) revealed that the company had decided to construct 8,000 t/a clethodim TC production capacity in its plant in Ningxia Pingluo Industrial Park, Shizuishan City, Ningxia Hui Autonomous Region. Ningxia Hanrun, established in June 2011 and mainly engaged in the production of a key clethodim intermediate—5-[2-(ethylthio)propyl]-3-hydroxy-2-propionyl-2-cyclohexen-1-one, was acquired 100% by Shandong Weifang Rainbow Chemical Co., Ltd. (Weifang Rainbow) in Jan. 2022. Currently, it is also pushing ahead with a capacity expansion project for the intermediate, which will bring the total capacity to 1,500 t/a. This time, the large-scale clethodim TC project means not only that Ningxia Hanrun will have its industrial chain extended downstream, but also that Weifang Rainbow's overall capacity for clethodim TC will be enlarged.   

  

        

  

    It is worth mentioning that another Weifang Rainbow's subsidiary, Ningxia Gerui Fine Chemical Co., Ltd. (Ningxia Gerui), is located in the same industrial park. Ningxia Gerui has already built up clethodim TC production lines, and purchases the intermediate from Ningxia Hanrun. With Ningxia Hanrun becoming Weifang Rainbow's subsidiary, the parent company has made its Ningxia production base ever more important.   

  

        

  

    At present, Ningxia Hanrun boasts 1,000 t/a production capacity for 5-[2-(ethylthio)propyl]-3-hydroxy-2-propionyl-2-cyclohexen-1-one; its products are sold to downstream companies. Yet once its own clethodim lines are set up and put into operation, the intermediate products will be consumed by the company itself. However, before Ningxia Hanrun could legally produce the herbicide product, it should obtain necessary production qualifications required by the Regulation on Pesticide Administration.   

  

        

  

    As to Ningxia Gerui, it has put into operation the lines for propanil TC, ametryn TC, prometryn TC, terbutryn TC, 2,4-D TC, 2,4-D Na TC, captan TC, folpet TC, etc., beyond the clethodim lines. On 21 May, 2022, a production safety accident took place in the company's plant, which led to a temporary suspension of all operations for safety inspections. It was until 28 June that the company, after rectification, was approved of resumption by local government.   

  

        

  

    On the whole, clethodim capacity in China has grown rapidly in recent years. There are many clethodim TC projects under construction or to be built, so no wonder the capacity expansion will continue in the near future. Yet with new capacity gradually put into use, stiffer competition is inevitable. Weifang Rainbow could gain advantage in clethodim TC market in this round of expansion. However, the continuous capacity increases in general will cause overcapacity of this herbicide and invite a price war. Relevant companies should keep a close eye on where this market is headed.   

  Source:CCM

  

  More information can be found at CCM Crop Farming China Monthly Report.

  

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