February 1, 2012
 

China Starch puts lysine expansion on hold

China's Shouguang Municipal Government has not yet approved an expansion grant for a new lysine production site undertaken by China Starch Holding's subsidiary, Golden Corn.

As a result, the company's plans to increase its annual production capacities are expected to take longer than originally anticipated.

In January 2010, China Starch said that it would increase its output capacity for "corn starch, lysine, starch-based sweeteners from 850,000 tonnes, 55,000 tonnes and 100,000 tonnes per annum to 1,650,000 tonnes, 105,000 tonnes and 300,000 tonnes per annum respectively in a span of approximately two years".

China Starch said that, to facilitate the grant of new production site, it may have to relocate the whole of its existing production plants and facilities located at its existing production site in Shouguang, Shandong Province, to a new production site as may be granted by the Shouguang Municipal Government.

"The proposed new production site of the group is expected to be remained in Shouguang with a site area of not less than 330,000 square meters and annual corn starch and lysine production capacities of 450,000 tonnes and 55,000 tonnes respectively, which are the same those of the existing production site of the group in Shouguang", said the company.

"Apart from that, further new production site may be granted and preferential policies may be offered to the group subject to final approval of the Shouguang Municipal Government", added China Starch Holdings.