June 22, 2006

HK Global Bio-Chem looking to divest operations

Global Bio-Chem Technology Group Co, the world's third-largest corn producer, said Thursday (Jun 22) it is considering spinning off some of its businesses.

The company, a producer of lysine and corn-based agricultural chemicals and foodstuffs, said the plan is still preliminary and it may not proceed with the listing.

Global Bio-chem did not specify the assets that might be listed, or the amount it intends to raise.

The company has a corn processing capacity of 1.8 million tonnes and a corn sweetener capacity of 160,000 tonnes, according to its website. Its corn-refined products include corn starch and corn gluten.

Global Bio-chem posted a 43 percent drop in 2005 net profit to HK$466.5 million (US$60 million), on weak lysine prices and high transport costs.