January 17, 2018
Third liquid methionine plant in sight for Adisseo
Bluestar Adisseo Company ("Adisseo" or "the Company") 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 its first two plants in Burgos, Spain and in Nanjing, China.
This new unit will be built on the NANJING Liuhe Chemical Park, close to Adisseo's existing plant in order to maximise synergies and to take the full advantage of Adisseo's experience curve to manage such project and operations.
With a designed annual capacity of 180 kilotonnes per year of liquid methionine, the new plant is expected to start about mid 2021 in order to meet customer demand and Adisseo's sustainable growth objectives.
This unit will be operated by the same management team as the current plant and will share some facilities, such as the administrative building, warehouse and logistic areas as well as utility infrastructures. This will lead to lower capital and operational expenses and further improve Adisseo's competitive advantages.
The total investment of about US$490 million, is funded by Adisseo's own cash on hand. The pay-back is estimated to be around four 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 form enjoys an even higher growth rate, with a yearly growth above 10%.
The launch of this major project also demonstrates the confidence from Bluestar and Chemchina management and boards in Adisseo's ability to compete on the methionine market and also of the team itself, in order to extract the full value of such capital investment.
In addition, we will also add an economy of scale by building another new plant in Nanjing. We can fully leverage the current local team, the experience from building and operating our previous plant in Nanjing as well as sharing some of the existing facilities, making it the largest liquid methionine platform operating two separated units."