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Two more Chinese companies exit pesticide market

Two agrochemical companies have “voluntarily given up” their pesticide production businesses and left the Chinese market in August, making for a total of 13 companies exiting the market so far this year. The information comes from the country’s Ministry of Industry and Information Technology (MIIT), and is reported by the China Crop Protection Industry Association. All the companies that have left the market have done so with the unspecified “assistance” of other chemical companies, suggesting some form of assimilation. Two of the 13 companies were from Sichuan province, and another two from Zhejiang, with the rest from different provinces around the country. The MIIT is publishing the details in a bid to promote industry consolidation. All the companies were small-scale manufacturers of pesticide formulations. Consolidation of a fragmented industry has been one of the major targets of the country’s 12th five-year plan (2011-15), and will likely play a large role in the next five-year plan, starting in 2016.

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