The company, a subsidiary of China National BlueStar, has announced plans to build a second liquid methionine facility in Nanjing in China, close to its existing one in Liuhe Chemical Park. The new plant will have 180 Kton/y capacity.
Jean-Marc Dublanc, CEO of Adisseo, said the aim of the additional build is to consolidate the company’s ‘leadership’ in the global methionine sector.
Adisseo has another liquid methionine facility in Burgos, Spain.
The idea of having two similar plants in Nanjing, said the group, is to maximize synergies. The company said new facility will be operated by the same management team that runs the existing plant; it will share an administration building, warehouse and logistics, and utility infrastructures.
“This leads to lower capital and operational expenses and further improves the competitive advantages of Adisseo.”
The company, which is investing around US$490m in the new facility, expects it to be on stream around mid-2021. It anticipates payback from the capital outlay in four years from completion of the project.
Adisseo, which provides liquid and solid forms of methionine and targets the monogastrics, aqua, ruminants and pet food sectors in that respect, sees a steady growth rate of 6% per year for the essential amino acid, with liquid methionine outperforming the powder format.
It estimates the current penetration ratio of liquid methionine is at around 40% worldwide, while in the US, Mexico and some markets, the penetration ratio of liquid products is above 60%.
The company says its concentrated liquid source of hydroxy-methionine is particularly well suited to large and medium-sized feed millers and integrators. Its powder source of DL-Methionine is designed for use in premixes, minerals and some compound feeds.