bluestar adisseo company (“adisseo” or “the company”) announces the board of director has approved the construction of a new liquid methionine plant in nanjing.
it will be the company’s third global liquid methionine platform after the first two world-class plants in burgos, spain and in nanjing, china.
this new unit will be built in nanjing liuhe chemical park, close to the adisseo existing plant in order to maximize synergies and take full advantage of adisseo experience curve to manage such project and operations.
with a designed annual capacity of 180 kton/y liquid methionine, the new plant is expected to start about mid 2021 in order to meet customers demand and adisseo’s sustainable growth objectives.
banc2 will be operated by the same management team than the current facility and will share some facilities, such as administration building, warehouse and logistic areas and utility infrastructures. this leads to lower capital and operational expenses and further improves the competitive advantages of adisseo.
the total investment will be approximately usd490 million, all funded by adisseo’s own capital. the pay-back period is estimated to be around 4 years.
jean-marc dublanc, ceo of adisseo, said: “the new project is a key step to consolidate our leadership in methionine industry. we see a steady growth rate of 6% per year for methionine, and the liquid methionine enjoys an even higher growth rate, with a yearly growth above 10%. the positive decision on this major project also demonstrates the confidence from bluestar and chemchina management and board in our ability to compete in the methionine market and also in the ability of the adisseo team to extract the full value of such a capital investment. in addition, we also see the economy of scale by building another new plant in nanjing. we can fully leverage the current local team, the experience from building and operating banc1 as well as sharing some of the existing facilities, making it the largest liquid methionine platform operating two separated plants.”