Promising Outlook For Agricultural Chemicals Industry
KUALA LUMPUR, Jan 25 (Bernama) -- The prospects for further expansion of the agricultural chemicals industry, particularly in the manufacturing of fertilisers, pesticides and herbicides, look promising.
International Trade and Industry Ministry's Parliamentary Secretary Datin Paduka Dr Tan Yee Kew said the industry was expanding as the local agricultural sector regained its importance and strength.
The rising consumption of these products was reflected in the increase in imports, Tan said.
She said the import of fertilisers during the January-November 2007 period totalled RM2.95 billion with a growth rate of 31.4 percent while the import of pesticides and herbicides amounted to RM279.6 million, up by nine percent.
She was speaking at a signing ceremony for the setting up of Hextar Unitop Sdn Bhd, a 50:50 joint venture between Hextar Chemicals Sdn Bhd and Unitop Chemicals Pvt Ltd.
Hextar Unitop will manufacture chemical additives for oil fields, agro chemicals, textiles, and personal care products in Malaysia at its plant in Port Klang.
The company aims to export about 70 percent of its products to 17 countries with China being the target market.
Hextar Chemicals is the largest agrochemicals manufacturer in Malaysia while Unitop Chemicals is a leading specialty chemicals producer in India.
Hextar Unitop, which is targeting a manufacturing capacity of 6,000 metric tonnes per year of specialty chemicals on single shift basis, will have an initial total investment of RM10 million.
Tan also said that due to increasing global demand, there has been healthy growth in the export of agricultural chemicals.
The export of fertilisers during the January-November 2007 period totalled RM1,160 million with growth of 19 percent while the export of pesticides and herbicides came up to RM561.6 million, higher by 34.3 percent.
She said that more than 50 companies were currently producing fertilisers, pesticides and herbicides in the country, with majority of them being small and medium scale enterprises.
Tan said to meet rising demand, the ministry had approved 19 projects for the manufacturing of fertilisers, pesticides and herbicides since 2006, involving a total investment of RM707.7 million.
She said five companies were currently producing emulsifiers and surfactants in the country but Hextar Unitop will be the first to produce them for agricultural chemicals.
