Bluestar Adisseo Co. announced that its board of directors has approved the construction of a new liquid methionine plant in Nanjing, China. It will be the company’s third global liquid methionine platform after the first two plants in Burgos, Spain, and in Nanjing, China.
This new unit will be built close to Adisseo’s existing plant in NANJING Liuhe Chemical Park in order to maximize synergies and take full advantage of Adisseo’s experience curve to manage such project and operations, the announcement said.
With a designed annual capacity of 180,000 tons of liquid methionine per year, the new plant is expected to start about mid-2021 in order to meet customer demand and Adisseo’s sustainable growth objectives, the company said.
The new site, BANC2, will be operated by the same management team as the current facility and will share some aspects, such as the administration building, warehouse and logistic areas and utility infrastructures. This leads to lower capital and operational expenses and further improves the competitive advantages, according to Adisseo.
The total investment will be approximately $490 million, all funded by Adisseo’s own capital. The payback period is estimated to be around four years.
Adisseo chief executive officer Jean-Marc Dublanc said, “The new project is a key step to consolidate our leadership in the methionine industry. We see a steady growth rate of 6% per year for methionine, and liquid methionine enjoys an even higher growth rate, with a yearly growth above 10%.
“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,” Dublanc added.
Methionine is an essential amino acid that cannot be synthesized sufficiently by animals and, thus, has to be supplied in the diet. The major types of methionine currently on the market are powder methionine and liquid methionine.
The current penetration ratio of liquid methionine is estimated to be around 40% worldwide, while in the U.S., Mexico and some markets, the penetration ratio is more than 60%, Adisseo said.
Along with industrialization of the feed industry in China, India and other developing countries, the growth rate of demand for liquid methionine is expected to be higher than powder methionine, the company noted.
Adisseo is a leading global expert in feed additives. The group relies on its seven research centers and 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 more than 100 different countries through its global distribution network.