Press releases

CIECH Sarzyna: export of crop protection products increased by 70 percent in the last two years. Among new markets, there are Canada and Australia

CIECH Sarzyna, the largest Polish producer of crop protection products, has just started delivering its herbicides (synthesised in Poland on the basis of MCPA) – to Canada and Australia. The company also runs intensive commercial operations in Iran, and at the same time, strengthens its position on the existing export markets – in Germany, Ireland, Great Britain, Thailand, Spain, Belarus and the Baltic States. In 2015-2017, the value of CIECH Sarzyna's exports increased by 70 percent, and the company is currently selling its crop protection products to around 40 countries around the globe.

CIECH Sarzyna is one of several global producers of herbicides based on MCPA. Demand for this type of crop protection products is particularly high in countries with extensive agriculture (large areas of arable land, low expenditure per hectare), such as Canada or Australia. The company maintains the highest purity of the active substances synthesised by it.

Crop protection products manufactured by CIECH Sarzyna will find their way to these two countries thanks to the effective use of the current situation in China, where many plants suspended or discontinued their production of MCPA substances due to their non-compliance with environmental protection standards. Chinese factories used to supply MCPA to the largest market for such products in the world, i.e. Australia.

- We used the favourable market situation and increased MCPA supplies to Australia. It is a market with great potential, with arable land of nearly 25 million hectares (compared to less than 11 million hectares in Poland), and the world's largest MCPA consumption. We have been receiving great feedback from customers who are delighted with our product - mainly due to its stable and repeatable top quality, which is the result of over 60 years of experience of Sarzyna in the production of crop protection chemicals. We took advantage of the expertise of our employees during the launch of our third MCPA synthesis plant in 2013. It is also probably the most technologically advanced facility of this type in the world – says Mariusz Grelewicz, President of the Management Board of CIECH Sarzyna.

Canada is yet another new direction of international expansion of the largest Polish manufacturer of crop protection products. The first deliveries to the Canadian market were completed in April 2018.

- Unlike Australia, which we returned to after a few years break, Canada is a completely new market for CIECH Sarzyna. Just like Australia, it is characterised by a huge crop area and high demand for MCPA esters – explains Mariusz Grelewicz.

Currently, approximately 20 percent of CIECH Group’s revenue in the AGRO business comes from foreign sales. CIECH Sarzyna, which is responsible for manufacturing crop protection products within the Group, regularly enhances its presence on foreign markets. It is worth emphasising that it is a very time-consuming operation – apart from business factors and the attractiveness of the offer, the ability to obtain registration is also crucial. This entails going through the whole process of authorising the active substance and the finished product on the market, which may take between 3 and even 7 years. To a large degree, the registration process of crop protection products resembles the one known from the pharmaceutical market.

- Due to the long-term process of product registration, increasing the share of exports in our sales is spread over time. In 2017, we managed to register 14 products abroad, including, among others, Germany, Italy, Belgium or the Czech Republic, but also in such exotic countries as Iran, where marketing operations with regard to our products are also intense – says Mariusz Grelewicz.

The Company's programme of development of its portfolio (in the AGRO area) on international markets envisages the registration of more than 20 new own products in the Central and Southern zones (including Germany, the Czech Republic, Italy, Spain, France, the United Kingdom and Ireland) in the years 2017-2021. The company is also implementing an investment plan to obtain its own authorisations for active substances, the number of which is expected to increase from 2 in 2016 to 10 in 2020.

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