Yangnong Chemical: Building a technological moat to consolidate its leading position in pesticides

Jiangsu Yangnong Chemical Co.
, Ltd.
(referred to as Yangnong Chemical), a subsidiary of Sinochem Holdings Co.
, Ltd.
, is the largest enterprise in the biomimetic pesticide industry in China.
The output and operating income of pyrethroid pesticides have consistently ranked No.
One
.

Yangnong Chemical's subsidiary, Jiangsu Youjia Plant Protection Co.

"From the fifth workshop of the Yangzhou Pesticide Plant to today's Yangnong Chemical, from more than 8 million yuan in 1992, 200 to 300 million yuan in 1999, and then to more than 9 billion yuan in operating income in 2020, the company's leading position in the industry is gradually established
.

Kong Yong said

Pay attention to independent innovation, research and development of new pesticide products

　Focus on independent innovation, research and development of new pesticide products　Focus on independent innovation, research and development of new pesticide products

Due to factors such as a long research and development cycle for new pesticides and uncertain input-output ratios, many pesticide companies use foreign chemical companies’ expired patents for product production, and Yangnong Chemical has established the only new pesticide in the domestic pesticide industry.
The creation and development of the State Key Laboratory and the National Engineering Research Center for Pesticides has developed a number of new pesticide varieties, including flumorph, tetraclofenac, and acetonitrile, which have become the leading products in the domestic market
.

The new-type fungicide flumorph is the first pesticide product with independent intellectual property rights approved to be officially registered in China, and the new-type pesticide chlorfluthrin is the first domestic pesticide product that has sold more than 100 million yuan

"In 2020, Yangnong invested 332 million yuan in research and development expenses, an increase of 3.
92% over the previous year, mainly for the development of innovative pesticides, the research and development of imitation pesticides, and the technological improvement of existing production processes
.

" Kong Yong said

According to the research team’s understanding, Yangnong Chemical insists on taking R&D as the forerunner and adhering to the technological innovation strategy of combining imitation and innovation.
It has successively overcome a number of key pyrethroid technologies and independently developed 72 new products, including 4 innovative products and 11 national key new products.
There are 20 high-tech products in Jiangsu Province, and the “Development and Application of Green and High-Efficiency Pyrethroid” project won the highest award in China's industry-the China Industry Award
.

In addition, the company has won 23 provincial and ministerial-level scientific and technological awards, such as the Jiangsu Provincial Science and Technology Progress Award and the China Petroleum and Chemical Industry Federation Science and Technology Progress Award, and has undertaken projects at the provincial and ministerial level and above such as the National Science and Technology Support Plan, the 863 Plan, and the transformation of scientific and technological achievements in Jiangsu Province.

Strengthening the integration of research, production and marketing to create cost advantages

　Strengthen the integration of research, production and marketing to create a cost advantage　Strengthen the integration of research, production and marketing to create a cost advantage

In addition to domestic leading pesticide research and development capabilities, multi-variety pesticide manufacturing capabilities, and safety and environmental protection capabilities, Yangnong Chemical also has extensive sales channels and markets, and makes full use of Sinochem's platform to expand
.

Its ability to integrate research, production and marketing has greatly enhanced the company's market competitiveness

The research team found that the original drug business is the core business of Yangnong Chemical.
The company's original drug sales are mainly targeted at downstream preparation companies.
In the total revenue of Yangnong Chemical in 2020, the original drug will account for 6.
204 billion yuan in revenue and account for 63.
11 of the total sales.
%
.

　　"Yangnong Chemical is currently the only domestic manufacturer that starts from basic chemical raw materials, synthesizes intermediates and produces pyrethroid technical drugs
.

" Kong Yong said that the company's key intermediates for the production of pyrethroid products are all self-contained and complete.

　　In addition, the company has also built high-standard waste gas, waste water, and waste residue treatment equipment, taking the lead in the agrochemical industry to realize the full life cycle management of chemicals
.

"Last year we invested about 200 million yuan in environmental protection, plus 1.

　　Consolidating the leading position of the industry lies in coordinated development

　Consolidating the leading position of the industry focuses on coordinated development　Consolidating the leading position of the industry focuses on coordinated development

　　It is understood that the third-phase project of Youjia Company took the lead to resume work in Nantong in February 2020 and was completed and put into production that year.
At the same time, it provided strong support for the realization of the business goal of "high-level design, high-quality installation, and high-efficiency operation"
.
At present, the fourth-phase project of Youjia Company has also completed the filing, safety assessment, environmental assessment and other administrative approvals, and has entered the civil construction stage
.

　　During the "14th Five-Year Plan" period, one of the major opportunities that Yangnong Chemical will usher in is the release of the new production capacity of the third phase of Youjia project and the rapid follow-up of the fourth phase of the project to steadily promote the industrialization of new products and accelerate future development.
Product layout, and lay the foundation for the long-term growth of Yangnong Chemical
.
Behind this is the tens of billions overall plan for the China Plant Protection Industrial Park jointly built by Yangnong Chemical and Rudong Coastal Industrial Park.
4.
8 billion has been invested plus the estimated investment of 2 billion for the fourth phase.
The nearly 7 billion scale project is impressive.
Look forward to
.
“One of the key tasks next year is digital engineering.
By vigorously promoting informatization, digitization, and intelligence, on the one hand, the safety and environmental protection level of the factory can be further improved, and on the other hand, it can also reduce the dependence on people and alleviate the labor force currently faced by the industry.
Difficult question
.
" Kong Yong said
.

　　In July 2021, Syngenta Group, a subsidiary of Sinochem Holdings, formally became the controlling shareholder of Yangnong Chemical, and Yangnong Chemical has thus placed itself on a new development platform
.
While deepening the integrated operation of R&D, production and marketing within the company, Yangnong Chemical Co.
, Ltd.
is also worth looking forward to for its coordinated development with group members such as Syngenta and Adama
.
The Syngenta Nanjing Innovation Center, which is under preparation, is expected to become a highland in China for global plant protection advanced technologies.
Together with the Yangzhou Process Technology Center and Shenyang Sinochem Pesticide Chemical R&D Co.
, Ltd.
two R&D bases owned by Yangnong, it will lead new technologies.
The R&D cooperation of the company has empowered the enterprise, giving Yangnong Chemical a broader space for high-quality development
.

　　(This article was written by Zhang Yong and Peng Yan)