Adama Brasil, a Brazil-based company controlled by the China National Chemical Corporation (ChemChina) group, plans to invest between US$30 million and US$50 million in new plants in the country, more precisely in Londrina (Paraná) and Taqari (Rio Grande do Sul), where it already operates, said the chairman of the company.
Rodrigo Gutierrez, quoted by the Brazilian press, said that the investment aims to develop new active ingredients for the production of pesticides, with the total amount invested dependant on the speed of approval of the molecules by government entities.
The company, which is betting on a high rate of innovation to grow, expects this investment to increase revenues this year by around 10% compared to 2016, when it recorded revenues of about US$480 million.
Gutierrez also said annual investment in research and development is a constant at all of the company’s plants, and currently stands at around US$8 million a year.
The chairman of Adama Brazil said growth in the country is due not only to growing demand for pesticides by the Brazilian agricultural sector but also to a drop in production in Chinese factories due to pressure from the Chinese government.
Gutierrez said factories in China that do not respect minimum standards of environmental safety are being closed, which is why Brazil has once again become competitive in relation to China in terms of pesticide production.
The history of Adama Brasil is based on two companies – Herbitécnica, based in Londrina and Defensa, in the city of Taquari – which merged in 1998 to become Milenia Agrociências, acquired in 2001 by Israeli group Makhteshim Agan, which was then incorporated into the ChemChina group in 2011. (macauhub)