M&A: Essential Way to Survive for Pesticide Industry in China

June 6, 2011 - PRLog -- Guangzhou China, June 2, 2011 – Mergers and Acquisitions (M&A) is the most essential way for Chinese pesticide enterprises to survive. It is predicted that M&A will become the trend of Chinese pesticide industry in the next ten years. CCM’s latest report in June of Merger and Acquisition Research in Pesticide Industry reveals the truth of pesticide industry in China.

China is one of the largest and most important pesticide production and consumption countries in the world. It is no doubt that there is huge market in China’s pesticide industry. However, most pesticide manufacturers are struggling to survive these days, suffering the problems of repeated construction, low industrial concentration, less self-innovation ability and less market competitiveness.

It is reported that there were 2,600 pesticide manufacturers in China in 2010, and most of them were small-medium enterprises. Besides, for the sake of inefficient R&D, aging equipments, lowly added-value products, weak market competitiveness and low industrial concentration, the products of these manufacturers were of poor quality.

There were only 20 pesticide technical manufacturers with annual capacity of more than 10,000 tonnes, and the number of those with high sales volume was even smaller, only 7 enterprises with the sales gross over USD10 billion. More surprisingly, 70% of domestic pesticide factories sold less than 2,000 tonnes per year.

In order to reverse the tough situation and optimize the industrial structure, M&A is the crucial way to success in China's pesticide industry. Chinese government plays a key role in the M&A. The number of pesticide manufacturers will decrease 30% by 2015, according to the requirement of the newly-released Pesticide Industry Policy by the Chinese government, which will eliminate small enterprises of poor performance.

With government's consistent encouragement, Chinese agrochemical enterprises can dedicate more time to technology improvement, brand development, and team management so as to achieve M&A for stronger competitiveness. Only those who succeed in the M&A can survive in Chinese pesticide industry.

If you are interested in this report, please check the following link for more information:
http://www.cnchemicals.com/Report/ReportMin.aspx?id=1886


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