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Shenghua Biok Criticized As Environmental Protection Summary: In June, Shenghua Biok was criticized and forced to stop production due to environmental protection problem. Tag: herbicide, Shenghua Biok, Environmental Protection, production, glyphosate, pesticide, chemical park, Nantong Jiangshan, Jiangsu Changqing July 19, 2011, CCM - According to CCM’s July Issue of Herbicides China News, Zhejiang Shenghua Biok Biology Co., Ltd. (Shenghua Biok) issued a bulletin on June 7th 2011, saying that its two plants were forced to suspend production by local government censorate, Deqing Environmental Protection Bureau, because of disqualification in environmental protection. In the meantime, the bulletin triggered public opinion and Shenghua Biok was condemned for its lapse in environmental protection. Although the production in the two plants, one of which belongs to Shenghua Biok and the other is owned by Zhejiang Biok K.P. Chemical Co., Ltd. (Biok K.P.), a subsidiary of Shenghua Biok, have been suspended already, some criticism disclosed that the suspended plant in Biok K.P. is irregular. In detail, Biok K.P. runs this plant for glyphosate production without related governmental approval in environmental protection. Detected by Deqing Environmental Protection Bureau, health protection zone in this glyphosate plant can not meet Chinese governmental standard. Currently, Shenghua Biok released that in the bulletin it is busily undergoing relative transformation in the two plants. In a move to reduce adverse influence on its businesses, Shenghua Biok will accomplish the transformation as soon as possible. Although the event cools down gradually, some financial reports point out that investors should take environmental protection into serious consideration while they want to invest into listed pesticide companies in China, based on the July Issue of Herbicides China News. It can be observed that Chinese government and public have paid much more attention to environmental protection than before. In a bid to develop low-carbon economy in China, Chinese government has taken a series of effective actions to reduce pollution and energy consumption. In pesticide industry, some regulations on restricting pesticide registration, heightening industrial threshold, relocation into chemical parks, and abolishment of some pesticide rebates, etc. have already taken effect on balancing the production and integrating the industry. In terms of Chinese pesticide companies including Shenghua Biok, even though the regulations will affect their production and sales to some degree in a short term, they will develop towards a health direction in the future after the revolution in pesticide industry. Take pesticide companies' relocation for example, centralized productions in chemical parks could not only meet environmental emission standard but also enjoy convenient transportation and transaction between cooperators in chemical parks. In addition, considerable governmental subsidy about environmental protection gives help to some companies' stagnant performance in recent years. For instance, aided by governmental


subsidies, the performances with decreasing risk of Nantong Jiangshan Agrochemical & Chemical Co., Ltd. and Jiangsu Changqing Agrochemical Co., Ltd. met growth in 2010. (Relative reports about the two companies' performances were referred in CCM’s Herbicide China News 1103 and 1104 respectively) Shenghua Biok, founded in 1993, is one of the leading manufacturers and exporters specialized in bio-agrochemicals, medicaments for animal nutrition and health in China. Shenghua Biok is a public listed company (code: 600226) on Shanghai Stock Exchange Market since 1999. Its main pesticide products include glyphosate, dicamba, paraquat, abamectin, etc. In 2010, the company witnessed the growth of 16.18% year on year in revenue to USD272 million, but net profit decreased slightly by 3.51% year on year to USD21 million.

Source: Herbicides China News 1107 http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1107: Shenghua Biok criticized as environmental protection Noposion issues short-term financial bond Jiangsu Tenglong invests in Inner Mongolia 2 Huapont acquires Nutrichem Jiangsu Huifeng invests in material manufacturers Chlorimuron-ethyl witnesses weak market in China Investigation: Three potential 2,4-D productions in China Chinese nicosulfuron export in Q1 2011 Jiangsu Changqing launches 1,200t/a fomesafen project Weifang Lvganlan’s pyridine on sale Good Harvest-Weien lays out glufosinate-ammonium production Jiangsu Jialong relocates diuron production Shandong Cynda's bentazone technical not on sale Overview of paraquat technical price in H1 2011 Chinese herbicide price keeps stable

Herbicides China News, a monthly publication issued by CCM International on 15th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry. Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

Shenghua Biok Criticized As Environmental Protection  

In June, Shenghua Biok was criticized and forced to stop production due to environmental protection problem.

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