Syngenta is set to completely cease global production of the herbicide paraquat by the end of June 2026, a move driven by intense competition from generic manufacturers that has steadily eroded the company’s production advantages in the sector.
Following a comprehensive asset review, Syngenta has initiated procedures to gradually shut down paraquat production at its Huddersfield facility in the United Kingdom, the company’s sole global manufacturing site for the active ingredient. The closure will also include a small-scale multi-product unit at the same location.
The news triggered sharp movements in the stock of Chinese agrochemical companies. When contacted by 21 KuaiXun reporters regarding the unusual stock price fluctuation, a representative from Red Sun, a major paraquat producer, acknowledged that the afternoon rally was likely directly linked to Syngenta’s production halt announcement. Red Sun holds a commanding global market share of over 50% in paraquat products. With Syngenta’s large-scale capacity now set to exit the market, global production capacity is expected to further concentrate in China.
Asked about the potential for price increases, the Red Sun representative stated that the situation had developed suddenly, and the company had not yet determined whether it would raise paraquat prices. The specific impact on the company’s financial performance, the representative added, remains to be assessed.
According to publicly available information, paraquat is a fast-acting, non-selective herbicide with both contact and systemic action, offering high efficiency in weed control. However, the product is also highly toxic to humans with no known antidote, classifying it as a high-risk agricultural chemical. In China, the sale and use of paraquat aqueous solution have been banned domestically since July 1, 2016, followed by a ban on soluble gel formulations effective September 26, 2020. Currently, domestically produced paraquat technical material is permitted only for export and is not allowed for sale within the country.
Red Sun, a state-controlled agrochemical enterprise, counts its core product pyridine alkali as a national manufacturing single-item champion, with the world’s largest production capacity. The company’s product portfolio includes technical-grade active ingredients such as paraquat, diquat dibromide/dichloride, and glufosinate-P, key intermediates including pyridine and 3-methylpyridine, as well as a range of herbicide, insecticide, and fungicide formulations.
Despite its strong position in paraquat, Red Sun’s recent financial performance has been under pressure. According to financial disclosures, the company reported operating revenue of RMB 2.328 billion for 2025, a decline of 13.87% year-on-year. The net loss attributable to shareholders widened to RMB 272 million, a sharp drop of 1,115.05% compared to the previous year.
Addressing the company’s financial results, the Red Sun representative noted that while paraquat provides stable profit support, the company’s overall capacity utilization remains low due to other product prices being at the bottom of their cycles. This has resulted in significant depreciation and amortization pressure, weighing on overall performance.
The representative also highlighted cost-side concerns, noting that methanol futures prices have risen significantly following the US-Iran conflict, putting some pressure on production costs. However, spot methanol prices have not yet seen major fluctuations, and given ample domestic methanol supply, the company currently expects overall methanol price increases to be limited.
