The first workshop of the company "August" for the production of active substances for chemical plant protection products (CPPP) was launched in the PRC. The first batches of 400 tons of manufactured products have already been shipped to the company's production sites in Russia and Belarus. The new plant was created as a Russian-Chinese joint venture (JV), which was named "Hubei Avgust Pesticide Co. Ltd. ". On the Russian side, the founder of the joint venture was Firm "August" JSC, on the Chinese side - the scientific and production company "Jiangsu Agrochem Laboratory Co. Ltd. " (JAL Co.), one of the leading pesticide manufacturers in China. The design capacity of the plant is designed to produce more than 7,5 thousand tons of active ingredients per year.
The Russian and Chinese companies have been enjoying mutually beneficial relations for over 20 years. JAL Co. is the main business partner of "August" in the production and supply of active ingredients, and is also one of the 35 largest companies in the PRC, producing pesticides. August and JAL Co. they already have experience of cooperation within the framework of a joint venture: in 2005 in Jiangsu province they created a joint company “Changzhou August Agrochem Co. Ltd. " specializing in the production of a wide range of pesticide formulations.
The new active ingredient production facility is located in the Jinzhou Industrial Economic Zone in Hubei Province and covers an area of 14,4 hectares. After the construction and launch of all workshops, the joint venture will be able to produce 7,5 thousand tons of active substances annually, and their range will include more than 30 items.
“As a leading Russian producer of chemical plant protection products, the company“ August ”is also the country's largest consumer of raw materials for their production. Some of the raw materials we need are produced in the Russian Federation and the CIS countries, but these are auxiliary components. Active ingredients - key products for the production of plant protection products - in any significant quantities they are not produced on the territory of the post-Soviet space, - says Sergey Alemaskin, director of production at JSC Firm "August". - Our suppliers of active ingredients are foreign companies from Western countries, India and China, which is our main partner. In the PRC, the production of chemical products is developed at a high level, including plant protection agents and intermediates for their synthesis. The volume of production of KSZR products in the "August" company is growing, and the range of consumed raw materials - active substances - is also increasing. It currently includes over 80 items. Therefore, with continued cooperation with Chinese companies producing active ingredients, the management of "August" decided to create its own production. So, in 2015, a Russian-Chinese joint venture was organized. Of course, we also thought about creating a plant for the synthesis of active substances in Russia, but today there are still a number of restrictions for this, hopefully temporary. The main one is the insufficient raw material base, which has been critically narrowed in the post-Soviet period: raw materials and components for synthesis in any case would have to be purchased in China, which would hardly be easier or cheaper. "
The authorized capital of the Russian-Chinese joint venture amounted to more than USD 80 million. Construction work on the creation of the first stage of industrial production, as well as all the necessary environmental and infrastructure facilities of the plant was completed at the end of 2019.
“The commissioning works in the first workshop focused on the production of active ingredients for fungicidal preparations were completed this spring, after the restrictions on the operation of enterprises related to the COVID-19 pandemic were lifted in China. Since April 2020, the plant began regular production of highly effective fungicidal active ingredients - first tebuconazole, and then propiconazole. So the August company is celebrating its 30th anniversary with its own production of active ingredients, ”says Sergei Alemaskin. - At present, the next workshop is being prepared for launch, focused on the production of herbicides. It is planned to put it into operation this fall. Further plans of the joint venture envisage the commissioning of insecticidal production, as well as new herbicide and fungicidal workshops with the organization of the release of new active substances. "
It should be noted that the new plant is a modern enterprise equipped with automated control and management systems for production processes. It has a complex of environmental protection facilities that ensure compliance with the stringent environmental standards in force in the PRC. The joint venture has already started work on the facilities of the second stage. According to the project, the plant as a whole will include 16 production sites for the production of various types of active ingredients: herbicides, insecticides, fungicides, defoliants, etc. The products manufactured by the new enterprise are focused not only on the Russian and Belarusian factories "Augusta": they are also planned to be delivered to international HCPP markets. It is assumed that after mastering the production of the entire assortment, the volumes of supplies for the enterprises of "August" will be commensurate with sales to foreign consumers from China itself and other countries.
As Sergei Alemaskin emphasizes, the production of the company "August" in the PRC will be aimed at producing, first of all, the scarce active substances necessary for "August" for the manufacture of preparations demanded by agricultural producers. Our own plant will optimize the procurement of raw materials and minimize the risks of disruption to supplies to production sites. Also, a consistently high quality of active ingredients will be ensured - by monitoring production processes and characteristics of intermediate and final products for compliance with the high standards in force in August.
Material provided by the press service of the company "August"