In late June, 2016, JK Sucralose Inc. (JK Sucralose)
held a press conference at the 18th FiAC2016 (Food Ingredients (Fi) Asia-China
2016), claiming victory in an intellectual property suit in Japan and
announcing that it had obtained another 2 patents. The Japanese sucralose
market is monopolised by local companies, and this is the first time a foreign
enterprise has managed to break into the market.
Source: Baidu
Previously, Chinese made sucralose could not be sold on the Japanese market, as
Japanese patents prevented it. On 10 May, 2012, JK Sucralose took the
initiative and launched a fight against Japanese companies for the “invalidity
of patents”. In partnership with Ogasawara Konno & Rokugawa (a Japanese law
firm), it analysed 200+ local sucralose patents trying to find discrepancies.
After a long-fought litigation, it finally achieved victory. This victory is
likely to offer unprecedented opportunities for the company during the
exploitation of the Japanese market.
“The sucralose business has bright prospects,” stated An Lijun, CEO of JK
Sucralose, “We intend to promote the idea that sucralose is both healthy and
safe, and to specifically develop the markets of Europe and America.”
With a production capacity of 2,000 t/a, JK Sucralose is the largest sucralose
producer in China and the 2nd largest in the world. Headquartered in Shanghai,
it operates direct-sale companies in places such as the US and Japan. “We now
sell in 90+ countries/ regions,” claimed the company, “We have already obtained
1st / 2nd supplier certification from many multinational food and beverage
companies.”
Sucralose, which cannot be broken down by the human body, is used as a
no-calorie additive sweetener. To date it has been approved for use in 120+
countries/ regions, and has been used in 3,000 kinds of food and in
pharmaceuticals and healthcare products.
Since May 2016, a succession of domestic
producers, led by JK Sucralose, have raised quoted prices:
-
Jan.-April: <USD45,116/t (RMB300/kg)
-
May: >USD60,150/t (RMB400/kg)
-
June: >USD90,230/t (RMB600/kg)
This can be mainly attributed to a reduction in output caused by environmental
policies and technological deficiencies. Tate & Lyle, the world’s largest
sucralose producer, has also played a role in the loss of output. In spring,
the company shut down its plant in Singapore and transferred production to the
US. However, production has not yet begun in the US, and lost capacity will
unlikely be restored soon.
Notably, it is rumoured that Tate & Lyle intends to bring an anti-dumping
case against Chinese made sucralose. However, JK Sucralose believes that this
is not likely to happen over the next three or four years, as anti-dumping
cases are typically brought when prices are low. “The price is comparatively
high now and is expected to increase further,” said the company.
JK Sucralose is the largest sucralose exporter in China. From Jan. to May, it
was responsible for 24.4% of all domestic exports, mainly to the US and
Indonesia. Despite this, under heavy environmental pressure, the company has
had to limit production, and thus sucralose is in short supply.
Facing supply shortage and environmental pressure, JK Sucralose has begun to
carry out strategic business activities. “Our 4,000 t/a sucralose technological
reconstruction project in the Jiangsu Sheyang Port Economic Zone was officially
given the go ahead in Feb. 2015.
With an area of 40 ha (600 mu) and a total
investment of USD90.2 million (RMB600) million, it is expected to generate
sales of USD180.4 million (RMB1.2 billion) annually,” said the company. In
addition, it plans to seize a 35-40% share of the market between 2018 and 2020
and raise production capacity to 12,000 t/a in the future.
This article comes from Sweeteners China News 1607, CCM
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Tag: sweeteners sucralose