Chinese amino acids
31 Jan 2005
A joint venture company formed between Degussa and the Chinese firm of Shandong Cathay Lineng Biotechnology will produce essential amino acids for animal nutrition.
Degussa will be the majority shareholder in the new company - Degussa Cathay Biotechnology - with a 51% stake, while Shandong Cathay will hold the remaining 49%.
During the course of 2005, the joint venture will construct an L-Lysine production plant at Cathay's existing site in Jining, Shandong province.
The initial annual capacity of the new plant will be 40,000 t of Biolys, Degussa's L-Lysine product - a key feed additive for the growing pork and poultry market in China. The company plans to expand its total annual capacity to 120,000 t by the year 2007/2008.
Degussa produces all four amino acids for animal nutrition: DL-Methionine, Biolys (L-Lysine), L-Threonine and L-Tryptophan at six sites in five countries. The company's Feed Additives Business Unit sells its products in 100 countries throughout the world.
Degussa will be the exclusive marketing channel for the Biolys produced at the new plant within China.
