April 30, 2004

China is Emerging as A Major Lysine Producer in The World

An eFeedLink Exclusive Report
 

Lysine is a key ingredient in feed production, particularly in hog feed. With the rapid progress in China's animal husbandry and livestock industry, the annual demand for lysine in China is expected to reach about 150,000 tons by 2005.

Key global lysine producers include ADM of the US, Ajinomoto and Kyowa Hakko of Japan, BASF and Degussa of Germany, as well as CJ Group of South Korea.

With the closure of Kyowa Hakko's lysine production plants in the US and Mexico, a temporary constraint may be seen in the global supply of lysine in 2004. Chinese analysts believe this will provide a good opportunity for China's local lysine producers to increase their domestic market shares, and to penetrate or increase their sales in overseas markets.

In recent period, as monthly output of Chinese locally produced lysine has far exceeded the volume of imported lysine into China, locally produced lysine is emerging as the dominant player in the Chinese market.

Append here are major lysine producers in China: 

• Global Bio-Chem Technology Group Co Ltd
  
  With an annual production capacity of 80,000 tons, Global Bio-Chem Technology Group Co Ltd is currently the largest lysine producer in China. It exported about 5,000 tons of lysine in 2003, and is expected to export 25,000 tons in 2004.
  
  
• Chuan-Hua Ajinomoto
  
  Chuan-Hua Ajinomoto is a Sino-Japanese joint-venture with 15,000-ton annual capacity. It has produced about 13,500 tons lysine in 2003.
  
  
• Da Quan Co., Ltd.
  
  This producer has a current annual production capacity of about 11,000 tons. It has produced about 10,000 tons lysine in 2003.
  
  
• Feng Yuan Group (BBCA Group)
  
  Feng Yuan Group's current annual production capacity is 20,000 tons and has produced about 5,000 tons of lysine in 2003. 

Other lysine plants in China that have formally commenced operations include the 15,000-ton annual capacity setup by Green Gold Co.; the 20,000-ton annual capacity facility by Golden Corn, and the 20,000-ton capacity plant by Maidan Group.

Good financial returns and the seemingly huge market opportunities have prompted more and more enterprises to join the lysine production industry in China. Companies which currently have lysine production plants under construction include Gansu Ronghua (50,000 tons per annum); Pinyuan Bio Co. in Sichuan province (10,000 tons per annum); CJ Biotech (the sole investment of CJ Group in Liaocheng, Shandong province; 60,000 tons per annum); Wuhan Wei-Chuan Food Co. (10,000 tons per annum) and Star Lake Bioscience Co. (30,000 tons per annum).

Additionally, East Hope Group is reportedly undertaking the construction of a lysine-producing facility in Baotou area of Inner Mongolia. It has been planned to produce as much as 200,000 tons of lysine a year when full production capacity is reached.