Over 2.4 million tons of new production capacity added! An overview of China’s 2023 developments in active‑ingredient and intermediate production capacity, as well as industrial‑chain expansion.

After years of development, China’s agrochemical industry has seen steadily rising market concentration and continuous expansion in market size. During the 14th Five-Year Plan period—marked as a strategic window for accelerating the sector’s transformation and upgrading—the industry is rapidly shifting toward green and low‑carbon practices, with industrial upgrading and structural adjustments gaining momentum. Leveraging domestic supply chains and agglomeration effects, the Chinese agrochemical sector enjoys distinct cost advantages, maintains a stable product mix, and witnesses steady improvements in production capacity and innovation. While meeting domestic demand, its products are also exported in substantial volumes, supplying international markets.

In recent years, driven by a combination of factors—including rising production costs, increasingly stringent market development and safety‑environmental regulations, and the relocation of agrochemical companies—investment in agrochemical projects has grown steadily, with construction activity becoming more frequent and capacity expanding rapidly. Leading domestic firms have continued to focus on high‑quality projects within their core markets, boosting output of scarce active ingredients through capacity expansion and leveraging agglomeration effects. Meanwhile, some companies have pursued investments to extend upstream into intermediate‑product manufacturing, pursuing a diversified product portfolio and further strengthening vertical integration of their flagship offerings, thereby gradually establishing end‑to‑end supply‑chain advantages anchored in key intermediate‑material resources.

This paper takes the investment and construction projects for pesticides and intermediates in China’s major chemical parks in 2023 as its starting point, systematically outlining the strategic positioning of China’s pesticide industry in capacity expansion and industrial-chain extension for key active‑ingredient and intermediate products, while exploring the supply-chain advantages that underpin “Made in China” in the agrochemical sector.

Abstract:

1. Summary Table of China’s Pesticide Active Ingredient Production Capacity Projects with a Combined Capacity Exceeding 10,000 Tons in 2023

2. Status of Ultra-Large-Scale Project Construction in China’s Pesticide Industry in 2023

3. Analysis of the Industrial Chain Layout of Major Products Among China’s Leading Agrochemical Companies in 2023

4. 2023 China Pesticide Intermediate Production Growth and a List of Capacity for Popular Products

5. A Brief Overview of the Formation of China’s Agrochemical Industry Clusters in 2023

01

In 2023, China’s pesticide production capacity expanded at an accelerated pace once again, with over 2.4 million tons of new capacity added.

According to incomplete statistics compiled by AgroPages, in 2023 China launched nearly 260 new agrochemical projects, adding over 2.4 million tons of production capacity—approximately 1.28 million tons of active ingredients and 1.12 million tons of intermediates. These projects span 21 provinces, 101 chemical industrial parks, and cover 357 distinct agrochemical products. Based on an analysis of domestic companies’ new investment and construction plans for 2023, a total of 182 active‑ingredient products were involved, including 94 herbicides (51.37%), 40 fungicides (21.86%), and 35 insecticides (19.13%). Notably, 26 active‑ingredient products each added more than 10,000 tons of capacity, among them glufosinate, 2,4‑D, atrazine, mancozeb, sethoxydim, diquat, metolachlor, thiamethoxam, glufosinate‑ammonium, 2,4‑D isooctyl ester, glyphosate, terbuthylazine, chlorantraniliprole, ametryn, prothioconazole, pendimethalin, MCPA, chlorothalonil, tebuconazole, prometon, propanil, oxathiapiprolin, simazine, pyraclostrobin, and acetamiprid.

Capacity expansion for herbicide technical-grade products: In 2023, the number of glyphosate technical‑grade capacity expansion projects was relatively limited, with only Lanzhou Xinlongtai Biotechnology Co., Ltd. launching a new facility, adding 27,000 tonnes of capacity. By contrast, proposed new paraquat capacity in 2023 totals as much as 158,000 tonnes; when combined with an additional 39,000 tonnes from refined paraquat, the total approaches 200,000 tonnes. Beyond dual‑herbicide products, the development of pyrazosulfuron‑ethyl capacity in 2023 has also drawn significant industry attention. Chinese companies are already competing to expand production, with a planned addition of 5,650 tonnes. Notably, Runfeng Shares has secured approval for its pyrazosulfuron‑ethyl project, planning to invest RMB 300 million to build a production line capable of 2,000 tonnes per year. Binong Technology likewise intends to invest in a 2,000‑tonne‑per‑year pyrazosulfuron‑ethyl technical‑grade plant. Among other high‑demand herbicide active ingredients, 2,4‑D technical is slated for a 130,000‑tonne capacity increase in 2023, while 2,4‑D isooctyl ester will see an additional 29,000 tonnes. For cyclohexenone‑based herbicides, with enesteron as the leading product, companies including Xianda, Runfeng, Lansheng, and Liben plan to add 66,300 tonnes of enesteron capacity in 2023. Meanwhile, amid continued market opportunities for diquat, a 93,000‑tonne expansion is projected for 2023, including 50,000 tonnes of diquat dichloride salt. Lastly, metolachlor, a key herbicide for major staple crops such as corn and soybeans, is set to gain an additional 40,000 tonnes of capacity in 2023.

Capacity Development for Fungicide Technical Products: The long-established fungicide mancozeb has remained popular to this day thanks to its outstanding performance in managing resistance. UPL has further announced the acquisition of Corteva’s mancozeb‑only business, excluding China, Japan, South Korea, and the EU member states, thereby strengthening its product portfolio and reinforcing its leadership position in the multi‑site fungicide market. Domestically, Limin Shares stands as a leader in China in terms of production capacity, technological expertise, and market share for mancozeb; the company has disclosed an annual production capacity of 45,000 metric tons for chelated‑form mancozeb. In addition to Limin Shares, Liben Crop plans to launch an “80,000‑ton‑per‑year mancozeb project” in 2023. Meanwhile, propiconazole is currently undergoing a major expansion phase, with an additional 19,100 metric tons of capacity coming online. Beyond these, tebuconazole, pyraclostrobin, and azoxystrobin are also among the most frequently expanded or newly built fungicide products, each adding roughly 10,000 metric tons of capacity.

Capacity Development for Pesticide Technical Products: Since the domestic production of chlorantraniliprole began in 2023, manufacturers have ramped up efforts across multiple fronts, including registration, capacity expansion, and the development of end‑use formulations. In terms of capacity, 2023 saw an additional 21,500 tonnes of production capacity, with companies such as Essent Chemical, Guorui Chemical, and Hongtaiyang publicly announcing updates on their chlorantraniliprole project developments. Notably, Youdao Chemical recently disclosed that its second-phase plant for producing 10,000 tonnes per year of chlorantraniliprole technical grade has successfully reached full production, bringing its total capacity to 11,000 tonnes. By late August 2023, Hongtaiyang also completed and commissioned a 2,000‑tonne‑per‑year chlorantraniliprole facility. Meanwhile, Zhongshan Chemical announced that, starting in 2024, it will launch a series of chlorantraniliprole‑based formulations tailored to diverse application scenarios, aiming to expand into both domestic and international markets. The production capacity built over the past two years for chlorantraniliprole technical grade is poised to enter large‑scale output. Beyond chlorantraniliprole, thiamethoxam technical grade added 39,200 tonnes of capacity in 2023, while acetamiprid—another major insecticide—also saw nearly 10,000 tonnes of new capacity added that year.

Note: The approved or planned production capacity shown in the figures and text of this article does not necessarily reflect the actual installed capacity; it is provided for reference only, and the actual situation shall prevail.

Note: The product capacity, investing enterprises, construction locations, and other information presented in Tables 1–7 below are all derived from publicly available sources, such as government websites and corporate announcements.

Table 1: Investment and Construction Status of China’s Pesticide Active Ingredient Products in 2023

(Only active‑ingredient products with a production capacity of 10,000 tonnes or more are included in this incomplete statistical tally.)

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Over 2.4 million tons of new production capacity added! An overview of China’s 2023 developments in active‑ingredient and intermediate production capacity, as well as industrial‑chain expansion.

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Source: AgroPages (World Agrochemical Network)