Impact of International Collaboration on China’s Methionine Market: 01-14-2020

In 2006, a Chinese Company China National Bluestar Co, part of the chemical company ChemChina, bought the French company Adisseo, a global leader in animal nutrition health. Since, the purchase Adisseo has tripled its sales and growth worldwide with innovative products such as liquid methionine, probiotics, and enzymes aimed at producing healthier animals and with new businesses such as aquaculture and non-medicated gut health products.

The collaboration between the Chinese and French teams successfully developed and built one of the major methionine plant in the world in Nanjing in 2009, with an investment of 480 million Euros. The methionine plant built at that time was the first liquid methionine plant in the country that has the world’s largest methionine market. In the start of 2018, the company announced the construction of the second liquid methionine plant on the same location as the first plant to maximize the synergies. The new plant is designed with an annual capacity of 180 kilotons of liquid methionine and is expected to start its production in mid of 2021 and the total investment is estimated to be $490 million, completely funded by the company’s capital. The liquid source of hydroxyl-methionine is particularly well suited to large and medium-sized feed millers and integrators. Furthermore, the liquid and solid methionine produced by the new plant will target the monogastric and aqua ruminants sectors which are the fasted growth end-user application of methionine specifically in China.

Impact of the new plant on China’s Methionine industry:

The new plant by Adisseo Bluestar will not only increase the production of methionine in the country but will also consolidate the manufacturer’s position in the methionine industry. According to Jean-Marc Dublanc, CEO of Adisseo, the methionine industry growth is expected to be 6% per year and yearly growth for liquid methionine exceeding 10%. Since China has become one of the largest poultry and pork market in the world, the demand for methionine is expected to increase by many folds in the coming years and new production plants can help meet that demand. Furthermore, since there are very few local methionine producers in the country because of technical thresholds, international investments lie this can promote R&D’s and can bring new technologies for the manufacturing of methionine. Adisseo Bluestar has already renewed its commitment to China in case of methionine and is enthusiastic to promote local growth in the industry. 

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