Stock Code: 000553 (200553) Stock Abbreviation: ADAMA A(B) Announcement No. 2021-48
ADAMA Ltd.
Announcement on Trial Production of Acephate/DMPAT Project
At Jingzhou Site
The Company and all members of the Company’s Board of Directors confirm that all
information disclosed herein is true, accurate and complete, with no false or
misleading statement or material omission.
ADAMA Ltd. (hereinafter referred to as “the Company”) has completed
construction, equipment installation and commissioning of the 30,000 t/a Acephate
Project at the Company's new manufacturing site in Jingzhou, Hubei Province. With
the trial production plan having passed expert review, the project has entered trial
production stage, signifying the formal commencement of operations at the new
manufacturing site.
I. General Information
The Company initiated the relocation and upgrade program of the old Jingzhou
site three years ago, aiming to bring the site to global best-in-class production, safety
and environmental standards to support the Company's global business growth. The
advanced facility that has now begun trial production produces Acephate and its
intermediate DMPAT, securing the Company’s leading global position in this
backward-integrated key molecule. Acephate is a wide-spectrum low-toxicity
insecticide used across the world in multiple crops such as rice, wheat and cotton.
As part of the relocation, the Company utilized the opportunity to expand the
production capacity of this key molecule and further improve its processes and
efficiency. In addition, the new, advanced site includes a state-of-the-art wastewater
facility, a thermal oxidation system for the elimination of emissions and odors, and is
designed to meet the highest international HSE standards.
II. Impact on the Company
The new, purpose-built site, in an approved industrial zone, is a key component
in ADAMA’s global manufacturing layout and is expected to deliver significant
operational efficiencies and cost reductions. The transformed new site is also designed
to accommodate additional new molecules emerging from the Company’s strong
development pipeline.
While the new site has recently resumed production and output is initially
starting at relatively low levels, the Company expects output levels to gradually ramp
up over the coming months. This return to production at the new Jingzhou site will
progressively reduce the need for incurring additional procurement costs which the
Company has endured while the plant has been suspended, and is expected to reduce
idleness charges as production and utilization levels rise over the coming months.
III. Reminder of Risks
It will take time for the Acephate Project to progress from the trial production
stage to reach full production and generate the envisaged economic benefits. At the
same time, during the early production stage, equipment stability as well as product
output and quality remains to be reviewed and improved. The Company may also face
the impact of changes in market environment, increased competition and other factors.
Investors are reminded to pay attention to investment risks.
It is hereby announced.
Board of Directors of ADAMA Ltd.
November 20, 2021
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