The State Council's environmental protection crackdown out of heavy-handed 70% of raw materials and pharmaceutical enterprises will be eliminated

On August 7, the CPC Central Committee and the State Council decided to open the fourth batch of central environmental protection inspections. According to the official sources of the Environmental Protection Network, eight central environmental protection inspection teams have been set up to carry out inspection and stationing work in Jilin, Zhejiang, Shandong, Hainan, Sichuan, Tibet, Qinghai and Xinjiang (including the Corps) to achieve full coverage of inspectors in all provinces (regions and cities) of the country. The inspection began with lightning speed, and today, the central fifth environmental protection inspection team has taken the lead in Sichuan to carry out the inspection work. According to the arrangement, eight central environmental inspection teams will enter the provinces and cities in the coming week.
In the previous inspection, the northern pharmaceutical industry was set as a typical, the enterprise 5 supervisors to carry out surveillance residence, 2 senior management personnel to obtain bail pending trial, and the northern pharmaceutical industry to take measures to stop production and rectification, clearly can not meet the rectification requirements can not resume production. And this time it will still be typical in the pharmaceutical industry.
pharmaceutical industry has always been the focus of environmental inspection, and API enterprises are the top priority. At the current national level of environmental protection requirements are iron fist attack, anti-pollution determination unprecedented. According to previous requirements, as of the end of June, 28 cities around Beijing, Tianjin and Hebei have verified "dispersed", "disorderly" and "dirty" enterprises, a total of about 176,000. The Ministry of Environmental Protection has requested that all companies that are unable to upgrade and upgrade their emissions standards be closed by the end of September this year.
environmental protection upgrade, for the pharmaceutical industry is the raw materials industry reshuffle. Time forward three or five years, API enterprises in order to avoid environmental pressure, and gradually shift the production base from the coastal areas to Inner Mongolia, Gansu and other economically underdeveloped northwest, but now environmental protection of the whole country, rather than the standards of different times, in this round of environmental protection upgrade, a large number of small API enterprises will be completely kicked out.
Zhejiang Taizhou has always been a very concentrated area of API enterprises, before 2001 there were more than 2000 pharmaceutical enterprises, mainly to produce RAW drugs and intermediates mainly small and medium-sized enterprises, but this year Taizhou City after the change of environmental protection department leadership, increase environmental protection efforts, Taizhou closed nearly a thousand pharmaceutical chemical plants, so far only a hundred. Taizhou environmental protection management on the power of API enterprises can be seen.
, how many API companies will be out of the country under the current environmental consolidation? Which companies will be the real winners in the future?1, environmental protection under the heavy punch, 70% of the RAW drug companies out!
, in addition to excluding inspection teams at the national level, the State Council has recently issued the Decision of the State Council on The Amendment of <>, which will come into effect on October 1 this year. It was mentioned that alterations, expansion projects and technological upgrading projects must take measures to address the existing environmental pollution and ecological damage associated with the project. Clear fine regulations have been formulated for failure to implement measures to prevent and control environmental pollution, and for the failure to build supporting environmental protection measures. Under the newly amended Ordinance, enterprises are at risk of "ordering closure" if they fail to meet the requirements.
From the point of view of the overall environmental protection requirements, the decision of the survival and development of API enterprises is not a simple product problem, but environmental protection, enterprise pollution control capacity determines whether API enterprises can continue to maintain good development.
VE and erythromycin thiocyanate, which have been in the doldrums recently, are also showing potential for price increases because of environmental protection. Most of China's VE production capacity is concentrated in Zhejiang region, and the central environmental protection group has recently been stationed in Zhejiang, environmental pressure will certainly make some parts of Zhejiang VE manufacturers stop production and maintenance, the future market will show a small rebound.
Again, such as erythromycin thiocyanate, the current domestic production capacity of the overall supply exceeds demand, but because of its high cost of pollution treatment, in the past two years a number of domestic and foreign enterprises to withdraw from the production of erythromycin thiocyanate, industrial concentration increased, with the international advanced level of environmental protection equipment Colum Pharmaceuticals will become the industry leader.
fact, the industry reshuffle and the power of the leader highlighted by the rising cost of environmental protection were evident a few years ago.
To the example of Haizheng and Xinhe, the representative enterprise of API, Haizheng Pharmaceutical's environmental expenditure in 2015 increased by more than 50% compared to 2013, and the environmental expenditure of Xinhe Cheng in 2015 increased more than three times over 2013. Environmental protection investment includes early equipment investment and late continuous human and resource input, small-scale enterprises can not afford, coupled with the previous low threshold of raw materials, thin profits, enterprises should be product upgrading and development and environmental protection of the power is seriously inadequate, shutdown is the most common choice.
four years ago, in 2013, as exports of bulk API continued to record negative growth, industry insiders had expected the decline in API to be irreversible, and companies were waiting to die if they did not transform. And early to see the wind mouth of the enterprise in the API market is booming around 2000 began to seek transformation, among them, Haizheng Pharmaceuticals joined forces with foreign investment to seek innovative pharmaceutical industry, Huahai Pharmaceutical owners attack preparation exports, Stone Pharmaceutical Group towards the integration of API preparations.
will die if you don't be environmentally friendly. Pan Guangcheng, executive chairman of the China Chemical and Pharmaceutical Industry Association, told E-Drug Manager, "After the implementation of the new environmental protection law, the environmental protection investment of API companies is increasing." "Environmental protection requirements raise the technical barriers of the API industry, forcing enterprises to shape their core competitiveness through environmental protection technology and technology, the API industry is getting rid of disorderly, low-cost competition, in the process, raw material drug species ushered in a surge in prices, once enterprises can cross the environmental protection threshold, will also usher in a new round of development opportunities different from the transformation."
Previously, Colum Pharmaceuticals in Xinjiang to build its own production base of antibiotic intermediates, is because of environmental requirements, so that it is deeply trapped in it, slower than earnings expectations, so far in environmental protection investment has been more than 2 billion yuan, this data for any API enterprises is not a small number, especially those small API enterprises.
now, not only in a region of Taizhou to increase environmental protection efforts, but the national rectification.
, according to public data, small businesses account for 77.04 per cent of Chinese API companies, but only 40 per cent of revenues. Large companies, at 4.17 per cent, account for 33 per cent of total API revenue. Therefore, from the national rectification efforts, as well as the Taizhou case presented data, at least 77.04 percent of small enterprises in the API market will be eliminated first, which is not alarmist, in the country to overhaul environmental protection at the present time, perhaps out of the enterprise will be larger than this number. winner after the shuffle on 2nd?
for the API industry, to push forward three or five years, it must be a time when no transformation must die. Stone Pharmaceutical Group, Huahai Pharmaceuticals and a large number of other enterprises are called the model of transformation in raw materials enterprises, but now it is unabashed to say that no transformation will also live very well, however, this score is who.
The Ministry of Environmental Protection inspection of Shandong, Zhejiang and other places is China's vitamin RAW drug enterprises dense distribution of the region, with the environmental standards again tightened, many vitamin raw material manufacturers have to stop maintenance, so that some vitamin varieties supply tight, some manufacturers have stopped quoting closely watch, but also some suppliers have been hoarding goods, cover the goods to rise, and constantly raise vitamin prices. In fact, some people in the industry have said that since november 2016 Wuhan International API Exhibition, leading enterprises have raised product prices, or stopped quotations, cover the rise.
Since November 1, 2016, Kazakhstan Pharmaceutical Group Pharmaceuticals has raised the price of penicillin industrial salt to 50 yuan/BOU; North China Pharmaceutical Hebei Huamin Pharmaceutical Co., Ltd. raised the price of oral cephalosporine RAW drugs, cephalosporine latest price 300 yuan / kg;
It is clear that the increase in environmental protection efforts, will inevitably eliminate a large number of small and medium-sized enterprises, unable to upgrade environmental protection, these enterprises will be eliminated in the next year or two, they will stay in the market will be those who now hold heavy money, vigorously enhance their environmental protection capabilities of enterprises snatched.
examples of environmental problems that have led to the success of good companies and increased concentration of the industry have been common in the past. Take lincomycin as an example, the domestic historical output of lincomycin in the range of 1500-4000 tons, the main manufacturers include Nanyang Pukang Pharmaceuticals, Henan Tianfang Pharmaceuticals two, production capacity of more than 1000 tons. Affected by the previous environmental protection incident, Nanyang Municipal Government ordered Nanyang Pukang Pharmaceuticals to stop production by December 31, 2014. The discontinued Nanyang Pukang Pharmaceuticals is after the decline in the supply of lincomycin, in 2015 the price of lincomycin rose sharply, so that Henan Tianfang Pharmaceuticals to earn a pot full.
, now a large number of leading raw materials enterprises have enjoyed the dividends brought about by environmental protection. According to the "Completion of key economic indicators of the pharmaceutical industry in 2016" issued by the Ministry of Industry and Information Technology, the total profits of enterprises in China's pharmaceutical industry increased by 15.6% in 2016, while the API industry grew by 25.9%. In the main business revenue growth rate is lower than the industry as a whole, the profit growth rate of API enterprises has run ahead of the industry, it is clear that the price factor is important.
data show that at present, the new three boards have a total of 63 main business for the manufacture of chemical raw materials, including intermediates (upstream of raw materials) as the main business of 31, mainly raw materials 32. As can be seen from the annual reports of several API companies, this wave of API price increases, which began in 2016, has ushered in a new wave of money- and money-making.
in fact, the future of what kind of API enterprises will make money, has been at a glance. With the further increase of environmental pressure, some environmental protection capacity will be gradually withdrawn, and some leading enterprises, its pollution control level is high, environmental factors have a relatively small impact on it, with the gradual withdrawal of small production capacity, vitamin industry concentration is expected to further improve, leading enterprises are expected to continue to benefit. (E drug manager)