Table II Comparison between continuous hydrolysis process and batch hydrolysis process in Nantong Jiangshan
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1 II Development of AEA pathway in China After several years development, AEA pathway has made great progress in operation process and equipment, the technology has become mature and the quality of the product also has become quite stable. The main breakthroughs can be described as follows: Table II Comparison between continuous hydrolysis process and batch hydrolysis process in Nantong Jiangshan Style of reactors Item Batch hydrolysis process Continuous hydrolysis process Annual output/tonne Reactor number X X Operator number XX XX Production efficiency of each reactor /(t/ a) Productivity per worker (t/ a) XX II Theoretical consumption of raw materials for AEA pathway Table II Theoretical consumption of raw materials for AEA pathway in May 2008 Raw materials Unit consumption (t/t glyphosate) Unit price of May (RMB/t glyphosate) Unit Cost(RMB/t glyphosate) 1 Glycine(Industrial grade) 35, XX 2 Paraformaldehyde (37%) 8, X 3 Triethylamine (99.5%) 13, X 4 Methanol (95%) 4, X 5 Dimethyl ester 40, XX 6 Hydrochloric acid (30%) XX
2 II Comparison of different routes Table II Comparison of different routes Routes Strong points Shortcomings Current situation Developin g trend Typical company AEA pathway XXX XXX DEA route X XXX IDAN route XX XXX X Based on the above discussion, we conclude that the AEA pathway is still competitive in China. But as the supply of DEA and IDAN becomes sufficient and their quality is as good as that from some overseas countries, the IDA route is sure to have a larger market share in the future. II Theoretical models for glyphosate formulations Table II Raw materials consumption of 10% glyphosate-ammonium Raw materials Unit consumption(t/t) Price(RMB/t) Unit Cost(RMB/t) Mother liquid(4%) (1) X 400 XXX Additive 8,000 XX Glyphosate technical(95%) XXX 90,000 Ammonia (3) XXX 800 XX
3 II-11.2 Marketing strategies Table II Marketing strategies of Chinese glyphosate industry Strategy Content Focus on export Promoting Brand Promoting high content formulation Cooperation XXX XX Perfecting sales X network XXX OEM X III Cost analysis of glyphosate - Production cost Table III Estimation on raw material costs of glyphosate in in May 2008 Unit Unit Cost Price (RMB/t) consumption (t/t) (RMB/t glyphosate) Glycine(Industrial grade) XX XX Raw materials cost Paraformaldehyde (96%) X X Triethylamine (99.5%) XX X Methanol (95%) X X Dimethyl ester XX XX Hydrochloric acid (31%) XX
4 Table III Estimation on manufacturing cost of glyphosate in in May 2008 No Item Unit Cost (RMB / t glyphosate) 1 Raw materials cost 2 Utilities X 3 Labour XX 4 Package XX 5 Maintenance XX 6 Depreciation XX Table III Estimation on management costs of glyphosate in in May 2008 No. Item Unit Cost (RMB /t glyphosate) 1 Salary cost of management staffs and other auxiliary staffs XX 2 Materials cost for management X 3 Interest on loan XX 4 Transportation cost XX 5 Amortisation of intangible asset XX 6 Distribution cost XX 7 Cost for three-waste treatment XX X Table III Estimation on production costs of glyphosate in in May 2008 In 2008 No Item Unit Cost (RMB / t glyphosate) 1 Manufacturing cost 2 Management costs - Profit Table III Profit estimation of glyphosate in in May 2008 Item RMB/t glyphosate Remark 1. income XXX XXX Price Other income XXX 2.Expense production costs X Taxes XXX XXX 3.Gross profit 4.Profit tax XXX 5.Profit after tax
5 IV-3 Comparison between the competitiveness of AEA pathway and IDA pathway and conclusion Table IV-3-1 Competitiveness comparison between the AEA pathway and IDA pathway Raw material Route Process Theoretical cost Current application supply Bottleneck AEA pathway XXX XX XX DEA route X X IDAN route XXX Figure V-1 Price model of glyphosate technical Price Model Production cost of each route Production cost Output of each route Input Capacity Output Price Output Import Export Demand & Supply intensity Market Demand Accidents Others All the original data in this segment are mainly sourced from CCM s database and custom s data
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