Early Jan., CCM learned from Anhui Kelihua Chemical Co., Ltd. (Anhui Kelihua) that it had finished the technological transformation and capacity expansion of its existing oxadiazon TC line, and built up a new 300 t/a oxadiargyl TC production line. The company's oxadiazon capacity increased from 800 t/a to 1,200 t/a.
Currently, there are only a few pesticide enterprises that have set up oxadiargyl TC production line with certain scale. Lianyungang Jindun Agrochemical Co., Ltd. (Lianyungang Jindun) has 500 t/a oxadiargyl TC capacity, but the line has been kept lying idle. With Anhui Kelihua putting its line into operation, oxadiargyl TC supply in China may be improved.
Anhui Kelihua mainly engages in pesticide business. It is located in the chemical concentration zone of Suzhou Economic and Technological Development Zone, Suzhou City, Anhui Province. The company chose to expand oxadiazon capacity and build oxadiargyl capacity to boost its competitiveness in the market as well as to follow its own long-term development planning. Oxadiazon TC is Anhui Kelihua's flagship product; with multiple-year experience in oxadiazon production, the company holds all the required certificates for production and trade concerning the product. Its pesticide registration for oxadiazon 97% TC (registration code: PD20060074) was obtained in 2006; it remains valid after renewal. It also acquired pesticide registration for oxadiargyl 96% TC (registration code: PD20132304) in 2013, and the validity lasts at least to Nov. 2023. The company boasts other certificates for circulation of its oxadiargyl TC products, too.
Oxadiazon is an N-heterocyclic herbicide. It is mainly used to control annual gramineous weeds and broadleaf weeds on rice fields, and it is also workable on fields of peanut, soybean, cotton, potato, asparagus, and in tea gardens and orchards. In recent years, along with changes to crop planting structure in China, oxadiazon market has expanded fast. Meanwhile, oxadiazon export from China has remained quite stable.
Large-scale active oxadiazon TC producers in China, beyond Anhui Kelihua, include Hunan Xingtong Chemistry Technology Co., Ltd. with 1,000 t/a oxadiazon TC capacity, Ningxia Lantian Agricultural Development Co., Ltd. with 1,000 t/a and Hefei Xingyu Chemical Co., Ltd. with 300 t/a. There are some domestic pesticide producers that have suspended for long time their oxadiazon TC lines, out of workplace safety and environmental protection concerns. For instance, Lianyungang Jindun's 1,500 t/a oxadiazon TC production equipment is still lying idle.
In addition, some oxadiazon TC producers decided to stop the lines, considering market changes as well as their own development plans. Chongqing Pesticide & Chemical Industry (Group) Co., Ltd. is one of such producers. It phased out its 500 t/a oxadiazon TC line. On the other hand, some others are planning oxadiazon TC projects to join the market, these enterprises including Anhui Guangxin Agrochemical Co., Ltd. and Shandong Taixing Chemical Technology Co., Ltd.
Oxadiargyl is a recent high-profile herbicide in Chinese pesticide market. It has high activity and leaves small residue, which is in line with the current pesticide use trend. In terms of control target, it has broader scope than oxadiazon, which makes oxadiargyl more cost-effective. Existing domestic oxadiargyl TC producers, beyond Anhui Kelihua, are: Lianyungang Jindun with 500 t/a, Ningxia Lantian Agricultural Development Co., Ltd. with 600 t/a and Hefei Xingyu Chemical Co., Ltd. with 50 t/a. The overall capacity in China is not large. But potential players are coming. For example, Anhui Guangxin Agrochemical Co., Ltd. has planned to construct 500 t/a oxadiargyl TC production line.
As for Lianyungang Jindun, though its production lines of oxadiazon TC and oxadiargyl TC are out of service at present, the company has been actively involved in rectification and applied for production resumption at local government. If it is approved, suspension in the company since April 2018 will finally end and production will resume.