January 23, 2006
China's Bluestar acquires major methionine producer Adisseo
China National BlueStar (Group) Corporation has acquired Adisseo Group, the People's Daily reported. This is the first overseas acquisition made by China's chemical industry and the largest investment project China ever made in France.
Adisseo Group is a major animal nutritional feed firm specialising in methionine, vitamin and biological enzymes. Held by British CVC Group, the French firm has five plants globally, a marketing network spreading over 140 countries and 792 technological patents in the field of methionine. It is currently the only producer offering methionine in both powder and liquid form and is the world's second largest methionine producer, accounting for 29 percent of the global market in 2004.
China National BlueStar (Group) Corporation is a wholly owned subsidiary by the China National Chemical Group Corporation (CNCC).
CNCC developed from a specialised industrial cleaning company 20 years ago into a chemical enterprise with assets of RMB24 billion in 2005. Methionine has been widely used in China, with 10 to 15 percent growth in demand annually. However, there has been up to now no domestic production, as the country does not have the technology.
China Development Bank has offered a large part of the acquisition funds in the form of development financing loans, since it is in line with the state industrial policy of aiding production of methionine and biological enzymes in the country.
China Bluestar plans to set up a methionine production base in China capable of producing more than 200,000 tonnes annually following the acquisition.