Adisseo Plans to Build a New World-Class Liquid Methionine Plant in Nanjing
Release time:2018-01-16
Bluestar Adisseo Company ('Adisseo' or 'the Company') announces the Board of Director has approved the construction of a new liquid methionine plant in Nanjing.
It will be the Company's third global liquid methionine platform after the first two world-class plants in Burgos, Spain and in Nanjing, China.
This new unit will be built in NANJING Liuhe Chemical Park, close to the Adisseo existing plant in order to maximize synergies and take full advantage of Adisseo experience curve to manage such project and operations.
With a designed annual capacity of 180 Kton/y liquid methionine, the new plant is expected to start about mid 2021 in order to meet customers demand and Adisseo's sustainable growth objectives.
BANC2 will be operated by the same management team than the current facility and will share some facilities, such as administration building, warehouse and logistic areas and utility infrastructures. This leads to lower capital and operational expenses and further improves the competitive advantages of Adisseo.
The total investment will be approximately USD490 million, all funded by Adisseo's own capital. The pay-back period is estimated to be around 4 years.
Jean-Marc Dublanc, CEO of Adisseo, said: 'The new project is a key step to consolidate our leadership in methionine industry. We see a steady growth rate of 6% per year for methionine, and the liquid methionine enjoys an even higher growth rate, with a yearly growth above 10%.
The positive decision on this major project also demonstrates the confidence from BLUESTAR and CHEMCHINA management and board in our ability to compete in the Methionine market and also in the ability of the ADISSEO team to extract the full value of such a capital investment.
In addition, we also see the economy of scale by building another new plant in Nanjing. We can fully leverage the current local team, the experience from building and operating BANC1 as well as sharing some of the existing facilities, making it the largest liquid methionine platform operating two separated plants.'
About Methionine
Methionine is a type of essential amino acid that cannot be synthesized sufficiently by the animals and has to be supplied in the diet. The benefit from methionine is 8 times of the cost for methionine.
The major types of methionine on current market are powder methionine and liquid methionine.Adisseo is the expert in methionine that can suits to all the needs of the feed industry by offering both solutions.
Adisseo has a unique methionine value proposition offering the broadest range of methionine forms and the widest service portfolio that perfectly fits the feed - monogastrics, aqua and ruminants - and pet food industries, and creates close ties with customers by providing expertise and a wide range of services for using its products.
The current penetration ratio of liquid methionine is estimated around 40% worldwide, while in the US, Mexico and some markets, the penetration ratio of liquid products are above 60%.
Along with industrialization of feed industry in China, India as well as other developing countries, the growth rate of demand for liquid methionine is expected to be higher than powder methionine.
About Adisseo
Adisseo is one of the world's leading experts in feed additives. The group relies on its 7 research centers and its production sites based in Europe and China to design, produce and market nutritional solutions for sustainable animal feed. With more than1,900 employees, it serves around 2,600 customers in over 100 different countries through its global distribution network. Adisseo is listed on the Shanghai Stock Exchange and is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with nearly 25,000 employees and a turnover of 6.4 billion euros.
Adisseo Corporate website:www.adisseo.comADISSEO press contact
In China: First Avenue - Grace Xu: +86 13651838486;grace.xu@first-avenue.com.cnIn France: Scenarii - Kattia Mendiguetti: +33 1 40 22 66 45 / +33 6 08 27 68 85 -kmendiguetti@scenarii.frBlue Star Adisseo Co. Ltd. published this content on 16 January 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 January 2018 13:09:17 UTC.
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