Fengle Agrochemical: Adjustment Generates Profits     

Anhui Fengle Agrochemical Co., Ltd. (Fengle Agrochemical) was established in 1998 and is a wholly owned subsidiary of Hefei Fengle Seed Co., Ltd. The company is mainly engaged in the production of highly effective, low toxicity, less persistent pesticides, and is currently manufacturing 15 original drug products and nearly 100 preparation products. Fengle Agrochemical claims that its principal product "quizalofop-p-ethyl" (herbicide) boasts a domestic market share of over 50%.

Breaking through obstacles

Since 2003, Fengle Agrochemical's performance has been increasing at 10-20% each year, while in 2008, the company was also significantly impacted by the global finance crisis. In order to keep competitive, the company promoted resource integration in 2008, cutting the initial six market areas for pesticide technical and preparation products down to three, thus unwaveringly giving up those customers who witnessed enormous turnover but brought little profit to the company. After a prudent consideration of the fact that it was hard to make a breakthrough for pesticide technical in 2008, it turned its focus to developing preparations. In 2008, Fengle Agrochemical sold 3 106 tons of preparation products, an increase of 59% compared with 2007; the sales volume was RMB116.5 million, a year-on-year increase of 44.3%. In 2008, the company strengthened the management of inventory, and the leftover rate was maintained at about 23%, a decrease of 10% compared with 2007, while sales costs witnessed a year-on-year decrease of 20.6%. In 2008, the company fulfilled the sales volume of RMB285 million, an increase of 20% over 2007.

Target new technologies  

In 1999, Fengle Agrochemical launched the trial run of quizalofop-p-ethyl technical project, and during the following two years, the company dramatically improved its synthetic process, currently shaping a quizalofop-p-ethyl production facility with the most advanced synthetic technologies and the largest production scale in China. At present, it has applied for four patents on its quizalofop-p-ethyl product series. And afterwards, the company successively developed a series of highly effective, low toxicity, less persistent pesticides, such as thifensulfuron-methyl technical, nicosulfuron technical and began commercial production of these, including a nicosulfuron technical capacity of 20 t/a, 200 t/a for herbicide Quizalofop-P-ethyl technical and preparations, 100 t/a for thifensulfuron-methyl technical, and 100 t/a for 1,2-cyclohexanediol, has extracted 8.8% quizalofop-P-ethyl EC (emulsifiable concentrate), 96% thifensulfuron-methyl, 98% tribenuron-methyl, 96% clomazone, etc.
As regards the development of preparation products, Fengle Agrochemical has successively developed new-style water dispersible environment-friendly pesticides: fenoxaprop-p-ethyl suspension concentrate (SC), enhanced atrazine vegetable oil suspension concentrate (OF), high-effect cypermethrin emulsion and quizalofop-p-ethyl emulsion, etc.
   Fengle Agrochemical has already confirmed its product development ideas, that is: giving priority to the production of new-style high-effect herbicides, and meanwhile, treating the production of highly effective herbicides, fungicide, modern biological pesticides, and fine chemical products as secondary. For even promising development, the company has requisitioned 22.3 hectares of land at Shuangdun Industrial Park, Hefei city, Anhui province for constructing a new large scale plant and continues to take the development of new products and technical progress as its core activity, and the company plans to achieve a new rise within 3-5 years. Fengle Agrochemical aims to be one of the top 20 domestic enterprises in 2010, with annual sales revenue of RMB 1.0 billion, and it intends for annual sales revenue to reach RMB 2.0 billion in 2015.