Industrial Biotechnologies China News                                         Vol.2 Issue 9, 2009Biotechnologies      Copy...
Industrial Biotechnologies China News                                                                                     ...
CCM Newsletter                                                                            Industrial Biotechnologies China...
CCM Newsletter                                                                                 Industrial Biotechnologies ...
CCM Newsletter                                                                                   Industrial Biotechnologie...
CCM Newsletter                                                                                Industrial Biotechnologies C...
CCM Newsletter                                                                                 Industrial Biotechnologies ...
CCM Newsletter                                                                             Industrial Biotechnologies Chin...
CCM Newsletter                                                                                    Industrial Biotechnologi...
CCM Newsletter                                                                                     Industrial Biotechnolog...
CCM Newsletter                                                                                Industrial Biotechnologies C...
CCM Newsletter                                                                            Industrial Biotechnologies China...
CCM Newsletter                                                                                                     Industr...
CCM Newsletter                                                                                       Industrial Biotechnol...
CCM Newsletter                                                                                 Industrial Biotechnologies ...
CCM Newsletter                                                                                                 Industrial ...
CCM Newsletter                                                                                           Industrial Biotec...
CCM Newsletter                                                                                    Industrial Biotechnologi...
CCM Newsletter                                                                                Industrial Biotechnologies C...
CCM Newsletter                                                                                         Industrial Biotechn...
CCM Newsletter                                                                                   Industrial Biotechnologie...
CCM Newsletter                                                                                     Industrial Biotechnolog...
CCM Newsletter                                                                                           Industrial Biotec...
CCM Newsletter                                                                                          Industrial Biotech...
Industrial Biotechnology China News-2010-Sample Issue
Industrial Biotechnology China News-2010-Sample Issue
Industrial Biotechnology China News-2010-Sample Issue
Industrial Biotechnology China News-2010-Sample Issue
Industrial Biotechnology China News-2010-Sample Issue
Industrial Biotechnology China News-2010-Sample Issue
Industrial Biotechnology China News-2010-Sample Issue
Upcoming SlideShare
Loading in …5
×

Industrial Biotechnology China News-2010-Sample Issue

1,453 views
1,350 views

Published on

Industrial Biotechnology, referring to the application of biotechnology in industrial processes based on renewable resources, is expected to compete with or even replace the existing petroleum-based products or chemical processes.

China's biotechnology development focuses on agriculture, pharmaceutical, energy, chemical and environment. Output value of China's biotechnology industry has developed rapidly with CAGR of 30% since 2005, largely attributed to Chinese government's increasing attention to biotechnology and growing number of biotechnology companies.

Chinese government has initiated several programs, aiming in 2020, China's total biotechnology industry output value will reach USD 3,660 billion, accounting nearly 4% of China's GDP. Although abundant biotic resources and increasing biotechnology talents make it possible for China to achieve its goal, lack of capital, advanced technologies and equipment has become bottlenecks, as most Chinese biotechnology companies are of small-scale and have weak innovation ability.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,453
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
46
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Industrial Biotechnology China News-2010-Sample Issue

  1. 1. Industrial Biotechnologies China News Vol.2 Issue 9, 2009Biotechnologies Copyright © CCM International Limited
  2. 2. Industrial Biotechnologies China News Vol.1 Issue 9, Sep. 8, 2009 Industrial Biotechnologies China News 0909 BIO-FUELS ...................................................................... 1 Ready reports related toLianhai Biotech to expand butanol with new technology...................... 1 industrial biotechnology:SFB expands xanthoceras sorbifolia capacity........................................ 2 - Future of White Biotechnology in ChinaGuizhou launches 10,000t/a biodiesel production line .......................... 4 Edition (2) - Biofuels Market in China – Edition (1) BIO-PRODUCTS .............................................................. 6 - Production and Market of MonosodiumDonta Group enlarging yeast production ................................................ 6 Glutamate (MSG) in China Edition (1)Continent Biotech expanding enzyme preparation ................................ 9 - Future of Red Biotechnology in ChinaCAS building largest lactase production base in China ...................... 10 - Future of Enzyme in China to 2020Novozymes expands enzyme production.............................................. 12 - Future of Green Biotechnology in ChinaHunan Yuyuan expands in microbial fertilizer ...................................... 14SK sells SCR enzyme technology to China........................................... 15 BIO-BASED CHEMICALS ............................................. 16 CCM related newsletter:China’s citric acid export volume up but price down........................... 16 - Corn Products China NewsVC export price rises ............................................................................... 18Jianding Biotechnology established...................................................... 20 Contact us for more informationBaolingbao to develop FOS and dietary fiber ....................................... 22 about CCM. BIO-MATERIALS ........................................................... 24Shenzhen Ecomann launches 5,000t/a PHA.......................................... 24Tiancheng Corn to carry out PLA project.............................................. 25 NEWS IN BRIEF............................................................. 26China holds 2009 summit forum on microbial fertilizer ....................... 26Green Energy Group invests in biodiesel.............................................. 26Laibin Tianren launches160,000t/a biofertilizer plant........................... 26China to cultivate large-scale energy forests........................................ 27Ministry of Health approves 26 food additives...................................... 27Beijing founds biogas technology strategic alliance ........................... 27Guangzhou establishes biotechnology service alliance ..................... 27Nanyang Tianrong builds 6,000t/a PPC catalyst ................................... 27Sichuan Guanghe to build 100,000t/a sweet potatoes ethanol ........... 27 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  3. 3. CCM Newsletter Industrial Biotechnologies China News Headlines of Industrial Biotechnologies China News 0909■ Lianhai Biotech will expand butanol production Editor’s Word based on its new technology. Welcome to September Issue of Industrial Biotechnologies China News■ Guizhou launched a 10,000t/a bio-diesel published by CCM International, a professional consulting company who has production line on Aug. 6th 2009. been intently focusing on dynamics of China’s industrial biotechnologies industry.■ Shuangfeng Forestry Bureau is expanding XS production capacity in Yichun City. Growing concerns on environmental protection and energy security have■ Donta Group is to launch its yeast expansion become key drivers for China’s fast growing industrial biotechnology. Successive project by the end of Sep. 2009. supporting policies are clear indicators showing China’s determination to develop■ Continent Biotech is building a 15,000t/a enzyme this industry----On June 2nd, 2009, Chinas State Council announced a policy preparation plant. package to accelerate bio-industry development; ---during Aug. 2009, some local■ Novozymes will construct an enzyme production governments like Shandong and Shenzhen issued their own plans; ----Also, in base in Tianjin. the 11th Five-Year Plan (2006-2010), Chinese government has proclaimed to■ CAS is building a lactase production base in promote biodegradable materials. Jiangxi, aiming to capture China’s huge lactase market. Attracted by its huge potential, enterprises both domestic and overseas have■ Hunan Yuyuan signed a capital increase displayed strong interests in bio-industry. For example, Shenzhen Ecomann’s agreement with Shenzhen Fortune Venture in order investment in PHA and Tiancheng Corn’s in PLA, the two promising materials to expand. from renewable resources, covered in this issue are both evidences■ SK Holding sold SCR enzyme technology to China demonstrating the trend. Besides, Novozymes’ global strategy on enzymes Power in late July 2009. expansion covered indicates a global trend for second-generation bio-ethanol.■ In the first seven months of 2009, VC export price has climbed and may keep growing. Besides, under recovering global economy and growing environmental protection■ Jianding Biotechnology plans to launch its awareness worldwide, more players domestic and overseas are expected to first-phase glucosamine and activated carbon increase investment in China’s biotechnology sector. production lines by the end of this year.■ Baolingbao plans to enter FOS and dietary fiber Main companies and institutes mentioned in this issue market through getting listed on Shenzhen Stock Exchange.■ China’s citric acid export volume has climbed up with price fall in the first seven months of 2009.■ Shenzhen Ecomann launched a 5,000t/a PHA production line in Shandong.■ Tiancheng Corn is planning to construct 10,000t/a PLA with several production lines. www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  4. 4. CCM Newsletter Industrial Biotechnologies China News BIO-FUELS Lianhai Biotech to expand butanol with new technologyJiangsu Lianhai Biological Technology from flour deep-processing as raw this expansion project is divided intoCo., Ltd. (Lianhai Biotech) will produce material. three phases (TABLE 1).butanol on a large scale by adoptingfermentation method using wastewater With total investment of USD400 million, TABLE 1: Information of the project Item Investment (USD) Capacity (t/a) Launch time First phase 60 million 35,000 Sep. 2008 Second phase N/A 100,000 Oct. 2009 Third phase N/A 200,000 Mar. 2011 Source: CCM InternationalThe core technology adopted in this industry domestic market.expansion project uses the patented To achieve energy conservationstrain technology from Shanghai and consumption reduction; At present, there are eight domesticInstitute for Biological Science (SIBS) of To achieve recycling and clean enterprises producing butanol byChinese Academy of Sciences (CAS), production; fermentation, among which Jilin Ji’anand is jointly developed b y Lianhai To promote Lianhai Biotech to be Biochemical Co., Ltd. (Jilin Ji’an) is theBiotech and Jiangnan University. the largest butanol producer at biggest one with the capacity ofAccording to CAS and experts from home. 50,000t/a, and another three, namelyChinas fermentation industry, the Jiangsu Jinmaoyuan Biochemical Co.,technology has reached international The project has been declared as a Ltd. (Jiangsu Jinmaoyuan), Guangxiadvanced level. major provincial project of transferring Guiping Jinyuan Alcohol Co., Ltd. scientific & technological achievements. (Guiping Jinyuan) and Jilin CathayBy adopting this new technology, this And in early Aug., it has passed the Industrial Biotechnology Co., Ltd. (Jilinproject will make the following major online assessment by the experts from Cathay) (FIGURE1), has capacity ofbreakthroughs: Provincial Science and Technology 30,000t/a for each. To achieve recovery of wastewater Department. Upon completion, butanol from flour deep-processing supply will become relatively sufficient in 1 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  5. 5. CCM Newsletter Industrial Biotechnologies China News FIGURE 1:Capacity of domestic butanol enterprises in 2008 60,000 50,000 50,000 40,000 (Unit: t/a) 30,000 30,000 30,000 30,000 20,000 10,000 5,000 5,000 5,000 5,000 0 Jilin Jian Jiangsu Guiping Jilin Cathay Jilin Zhonghai Heilongjiang Tangshan Tongliao Jinmaoyuan Jinyuan Haocheng Jidong Zhongke Tianyuan Source: CCM InternationalNote: Jilin Zhongha: Jilin Zhonghai Chemical Co., Ltd. Heilongjiang Haocheng: Heilongjiang Haocheng Chemical Co., Ltd. Tangshan Jidong: Tangshan Jidong Solvent Co., Ltd. Tongliao Zhongke Tianyuan: Tongliao Zhongke Tianyuan Starch Chemical Co., Ltd.Domestic butanol supply has been enterprises plan to expand their producers. However, butanol applicationfalling short of demand, with the output production capacity. And annual is expected to become an irreversible50% less than the consumption. From increased capacity of the butanol trend, given the potential pressing2000 to 2006, domestic butanol projects will reach 730,000 tonnes. situation of oil resources depletion andconsumption had increased year by Through continuous project expansion, the expected price rise of oil, so butanolyear, and in 2006, the consumption China will be able to reverse the fermentation industry is sure to becomereached 7,400,000 tonnes at home. dependence on imports. promising.Meanwhile, the butanol prices haverisen from about USD1,318/t in Jan. in Although crude oil prices has dropped to2006 to USD2,342/t at present. below USD50/barrel caused by financial crisis since H2 2008, which had led toCurrently, some domestic butanol production suspension of many butanol SFB expands xanthoceras sorbifolia capacityShuangfeng Forestry Bureau (SFB, biggest bio-energy production base in initiated since 2008, which is expectedlocated in Yichun City, Heilongjiang Heilongjiang upon completion. to be launched by the end of 2010. TheProvince) is building a xanthoceras second phase with 266 hectares XS issorbifolia (XS) base in Yichun City, This XS base construction is divided being built at present and will bewhich is expected to become the into two phases. The first-phase launched by the end of 2012. In fact, construction with 133 hectares XS has SFB has planned to expand its XS 2 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  6. 6. CCM Newsletter Industrial Biotechnologies China Newscapacity to 1,000 hectares in the next XS (PICTURE) is an ideal raw material no environmental pollution parameterfive years. for biodiesel and bioethanol production like sulfur and nitrogen, etc, which with its high oil content, with seed oil conforms to the quality indexes ofInsider reveals that after the launch of content of about 30%-36% and kernel biodiesel. Since 2005, China hasthis XS base, it will supply XS for China oil content of 50%-70%. Besides, it has successfully developed the technologyNature Petroleum Company (CNPC) as high output of about 1,500-2,000kg/h. to produce biodiesel with XS as rawthe raw material for biodiesel or Moreover, it is said that biodiesel material.bioethanol production. produced from XS has about 93.4% hydrocarbons with 18 carbons and has PICTURE: Cross-section of XS Source: www.Yxsfz.cnAt present, there are about 5,300 for carbon content in biodiesel. Those However, raw material cost is too muchhectares XS in China, mainly distributed biodiesel producers using waste animal for producers using high oil contentin four provinces – Shanxi, Inner oil and vegetable oil as raw material plant to produce biodiesel (TABLE 2),Mongolia, Liaoning and Shaanxi. And were seriously affected by this standard which is a bottleneck for theirsome other provinces like Gansu are and some even went bankrupt. The development. For example, Sichuanalso trying to cultivate this plant, and quality of biodiesel produced from waste Gushan Oil Chemical Co. Ltd. (SichuanChinese Academy of Forestry has animal oil and vegetable oil varies a lot, Gushan) produces biodiesel by usingprovided great support to these areas which can do harm to machines. soybean or colza with capacity ofby popularizing the XS planting 240,000t/a, and the cost on raw materialtechnology, aiming to provide ample raw This standard has driven biodiesel has seen continuous increase, thusmaterial for biodiesel production in the producers to actively search for some hindering the development of biodiesel,future. Currently, most of XS are used in high oil content plants as raw materials. according to Mr. Zhao, president ofedible oil, medicine, etc, in China. Guizhou, for instance, had launched a Sichuan Gushan. 10,000t/a biodiesel production line withChinese government enacted a jatropha as raw material this month.‘National standards for biodiesel ‘in2008, which requires a higher demand 3 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  7. 7. CCM Newsletter Industrial Biotechnologies China News TABLE 2: Main biodiesel producers in China and their raw materials Company Raw material Sichuan Gushan Soybean or colza. Liuzhou Minghui Biofuels Co., Ltd. Jatropha, tung, tea plant Longyan Zhuoyue New Energy Development Co. Ltd Waste animal oil and vegetable oil Source: CCM InternationalXS can be planted in a barren land, production capacity has reachedwhich is easy for mass production. As As estimated, the demand for biodiesel 3,000,000 tonnes in 2008, while actualnon-staple food, XS price is expected in China will increase a lot in the near output was only 300,000 tonnes,be less influenced by price fluctuation of future due to global energy shortage. indicating a huge developmentother products like agricultural products, The prices of petroleum products have potential.industrial products, etc, which will increased for 24 times in 2009, drivingcontribute to development of XS-based the government to make more efforts tobiodiesel. seek new energies. Besides, biodiesel Guizhou launches 10,000t/a biodiesel production lineGuizhou has launched the first-phase Academy of Sciences, and all indexes biodiesel project takes Jatropha as raw10,000t/a biodiesel production line in of the samples have reached the material and is divided into three phases.New Material Industrial Park (Guiyang National Biodiesel BD100 standards. Upon completion of the three phases thCity, Guizhou Province) on Aug. 6 (TABLE 3), the total capacity will reach2009. Invested by the No.061 Base of China 160,000t/a. Aerospace Science & IndustryCurrently, the first biodiesel samples of Corporation (located in Guizhou), athis project have been sent for test by large scientific research and productionGuangzhou Energy Institute of Chinese center for aerospace products, this TABLE 3: Information of the biodiesel project Phase Investment (USD) Planned capacity (t/a) Launch time First phase 4,390,000 10,000 2009 Second phase 7,320,000 50,000 2010 Third phase N/A 100,000 2012 Source: CCM InternationalThe successful launch of Guizhou’s Jatropha resources in Bouyei-Miao What’s more, there are many barren10,000t/a biodiesel line is based on the Autonomous Prefecture of Qianxinan in mountains suitable for Jatrophafollowing advantages. southwest Guizhou, as well as the cultivation, and through scientific valleys of Nanpan River, Beipan River, cultivation, the average per- hectareFirst of all, Guizhou is rich in biological Red River and Duliu River. yield of fruit can reach 4,500 kilograms,resources. There are abundant wild which can produce about 100 to 200 4 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  8. 8. CCM Newsletter Industrial Biotechnologies China Newskilograms biodiesel. Using Jatropha as Guizhou and diesel is greatly needed in to invest in Jatropha production base inthe main raw material for biodiesel mining operation. Yunnan, and China National Offshoreproduction can not only reduce Oil Corporation (CNOOC) will invest inproduction cost, but also increase the At present, some domestic and foreign Hainan and Sichuan, and Britishlocal peasants’ income and prevent land energy companies also concern about Sunshine Technology Group, adesertification. the potential development of Jatropha in commercial forestry plantation company, China, and have invested in Jatropha cooperates with the Honghe PrefectureBesides, local market prospect of cultivation. For example, PetroChina Forestry Bureau of Yunnan Province tobiodiesel is expected to be bright, as Limited (Petrol China), the biggest jointly develop Jatropha base.there are many mining companies in controlled subsidiary of China National Petroleum Corporation(CNPC), plans PICTURE: Distribution of Jatropha bases Main Jatropha planting regions Minor Jatropha planting regions Source: CCM InternationalAt present, there are dozens of biodiesel capacity has reached demand is estimated to reachbiodiesel enterprises including private, 3,000,000t/a in 2008, the actual annual 20,000,000 tonnes by 2010 in China. Injoin stock and state-owned enterprises. output is only 300,000 tonnes, indicating view of the huge gap between theHebei Zhenghe Co., Ltd., Sichuan a huge development potential. supply and the demand, relatedGushan Group Co., Ltd. and Fujian enterprises are expected to seize theZhuoyue Co., Ltd. are relatively larger By 2010, China’s annual biodiesel market opportunity and speed up theenterprises with annual output of above output will reach 1,000,000 tonnes, and biodiesel investment (FIGURE 2).10,000 tonnes. Although China’s 9,000,000 tonnes by 2020. And the 5 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  9. 9. CCM Newsletter Industrial Biotechnologies China News FIGURE 2: Capacity of major biodiesel producers in 2008 250,000 240,000 200,000 150,000 100,000 (Unit: t/a) 100,000 50,000 50,000 50,000 30,000 12,000 10,000 10,000 6,000 0 Sichuan Liuzhou Longyan Xiamen Hebei Heibei Jiangsu Guizhou Shanxi Gushan Minghui Zhuoyue Zhuoyue Zhenghe Fukuan Keyuan Jiangnan Huashuo Hangtian Source: CCM InternationalAs an emerging industry in China, to promote its development. National Taxation Supporting Policy forbiodiesel is characterized by both great Peoples Congress has implemented Bioenergy and Biochemical Industry’development potential and various the ‘Renewable Energy Law’ since 2006, and so on. These policies are expectedrestrictions in the early stage. Chinese and the Ministry of Finance, National to provide a strong support for domesticgovernment has attached great Development and Reform Commission biodiesel development.importance to the development of and other departments jointly issuedbiofuels and released relevant policies ‘Advices on Implementing Fiscal and BIO-PRODUCTS Donta Group enlarging yeast productionDongguan Donta Group Co., Ltd. Biochemical Science & Technology Co., yeast producer), with investment of(Donta Group, headquartered in Ltd. (Guangxi Yipinxian) in Laibin City, USD102 million.Dongguan City, Guangdong Province) is Guangxi Province for its yeast capacityexpanding yeast production and is expansion. Donta Group’s yeast expansion projectexpected to launch its 48,000t/a dried is based on the following advantages.yeast and 10,000t/a yeast extract Actually, these two subsidiaries werefacilities by the end of Sep. 2009. jointly invested by Donta Group, Firstly, this project can take the Guangxi Laibin Donta group Co., Ltd. advantage of adequate raw materialEarly in May 2006, Donta Group had (Laibin, a local subsidiary of Donta supply in local areas. As the biggestestablished two subsidiaries, Guangxi Group, established in 2003) and sugar cane production region in China,Danbaoli Yeast Co., Ltd. (Guangxi Lesaffre Group (the world’s biggest Guangxi has taken up more than 70% ofDanbaoli) and Guangxi Yipinxian China’s total sugar cane output these 6 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  10. 10. CCM Newsletter Industrial Biotechnologies China Newsyears. And Laibin took up 18% of which has strong sales networkGuangxi’s total with 8.3 million tonnes in throughout China and extensively With fast growth of some local2008. Besides, Donta Group has 7 exports its products to Southeast Asia, companies, China’s yeast market hassugar processing bases supplying Middle East, South America, Africa, etc., seen intense competitions in recenttreacle as common raw materials of which will provide mature sales years, thus Lesaffre Group prefer toyeast for the new project. Besides, local networks for these two new companies. seek some cooperators to enlarge itsgovernment has been paying much market share in China. As the biggestattention to developing yeast industry by In addition, there are few yeast yeast producer in the world, Lesaffrereleasing tax preferential policies for producers in Guangxi, but the Group launched a yeast productionyeast companies. consumption volume is estimated at base with capacity of 3,000t/a in Anhui 50,000 tonnes per year, indicating a big Province of China in 1999, and then itSecondly, this project is equipped with market opportunity. built a sales company in Shanghai inadvanced production technology and 2002.equipments sourced from Lesaffre This cooperation can achieve a win-winGroup, who has been producing yeast situation. Donta Group wants to bring in In 2008, China’s total yeast productionfor 150 years. With the strong technical new advanced technology for deeper capacity reached 190,000t/a,support from Lesaffre Group, the new development in yeast field, and Lesaffre accounting for nearly 20% of the world’sfacilities are expected to make the best Group intends to expand its market total capacity, and the actual total outputuse of the advanced equipments. share in China and cut down the reached 100,000 tonnes. It is expected production cost with local rich raw that, as some producers are expandingBesides, Donta Group has a subsidiary material supply and large sales network production, the total yeast capacity willnamed as Guangdong Danbaoli Group of Donta Group, according to Mr. Guo, reach 210,000t/a in 2009 (FIGURE 3).Co., Ltd. (Guangdong Danbaoli) with technical engineer of Guangdongcurrent dried yeast capacity of 16,000t/a, Danbaoli. FIGURE 3: China’s total yeast capacity, 2005 ~ 2009est. 250,000 210,000 200,000 190,000 170,000 150,000 150,000 (Unit: t/a) 120,000 100,000 50,000 0 2005 2006 2007 2008 2009est. Source: CCM International 7 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  11. 11. CCM Newsletter Industrial Biotechnologies China NewsBesides, yeast industry is becoming accounting for over 70% of China total put great efforts to expand theirmore and more concentrated in China capacity. In recent years, the top 2 have capacity.with the top 3 players (TABLE 4) TABLE 4: Major yeast producers in China, 2009 Manufacturer Location Capacity ’08Hubei Angel Yeast Co., Ltd. Xinjiang, Shandong, Inner Mongolia, Henan, Guangxi and Hubei 91,000Mauri Yeast Heilongjiang, Hebei, Shandong, Guangdong, Xinjiang 30,000Guangdong Danbaoli Yeast Co., Ltd. Guangdong 16,000Guangdong Zhuhai Aoli Yeast Co., Ltd. Guangdong 2,000Anhui Lesaffre (Mingguang) Anhui 3,000Shandong Yantai Hongde Food Industry Co., Ltd. Shandong 2,000Guangdong Jiangmen Center for Biotech. Co., Ltd. Guangdong 4,000Shandong Xiwang Leavening Co., Ltd. Shandong 1,500Qiqiha’er Longtai Food Co., Ltd. Heilongjiang 1,500Source: CCM International PICTURE: Distribution of major yeast production regions in China Source: CCM InternationalIn addition, in recent years, China’s like feedstuff and flour products, etc. As except sour dough do not apply activedemand for yeast and yeast extract has estimated, the major potential market dry yeasts, showing a huge marketbeen increasing year by year attributed for yeast in China is rural areas, where potential.to the development of related industries about 90% of homemade flour products 8 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  12. 12. CCM Newsletter Industrial Biotechnologies China NewsDonta Group is a state-owned companies located in 4 provinces -enterprise established in 1935, and has Guangdong, Guangxi, Shanxi, Yunnan,a raw sugar processing base with Donta Group is mainly engaged in fourprocessing capacity of 700,000t/a, series of products, namely sugar,which provides part of molasses for biological engineering, thermal-electricGuangdong Danbaoli. As a power and paper-making.conglomerate with 21 factories and Continent Biotech expanding enzyme preparationContinent Biotech Group Co., Ltd. industrial enzyme etc. But feed has spread throughout China, even to(Continent Biotech, headquartered in enzymes like phytase, alkaline pectase, some other countries in Asia like Japan,Qingdao City, Shandong Province) is liquid complex enzyme and alkaline Philippines, etc. , and its sales valuenow constructing a 7,000t/a solid xylanase will remain the company’s key reached about USD44 million.enzyme preparation production line, the products.second phase of its 15,000t/a enzyme Continent Biotech has been payingpreparation plant, in Weifang City, Actually, Continent Biotech is the first great attention to after-sales service forShandong Province. enzyme producer at home to clients both at home and abroad. It built industrialize liquid enzyme spraying a biotech research institute in ShandongContinent Biotech’s 15,000t/a enzyme uniformity technology which is in 2005, for the sake of developingpreparation plant consists of the developed independently in 2001. By market-target and high-quality feedfirst-phase 8,000t/a for liquid enzyme applying this technology in its enzyme enzyme and supply technology supportpreparation, which was completed on preparation production, reaction for various clients in clients.Jul. 20th 2009 with investment of temperature can keep below 60℃ thusUSD12 million, and the second-phase maintaining high enzyme activity, as in In 2008, there were over one hundred7,000t/a for solid enzyme preparation normal reaction temperature would feed enzyme producers in China withwith investment of USD22 million. Upon surpass 60℃ with enzyme activity relatively small production capacity andcompletion of this plant, Continent losing largely. low-quality products, exceptBiotech will expand its total enzyme Novozymes (China) Biotechnology Co.,preparation capacity to 20,000t/a, and is Besides, with this technology, Continent Ltd, the largest enzyme producer in theexpected to become the largest enzyme Biotech has built another two liquid feed world. Owing to lack of strong marketpreparation producer in Shandong. enzyme production bases respectively competitiveness, in terms of technology in Binzhou City with 3,000t/a complex and capitals, many domesticEarly in Aug. 2008, Continent Biotech enzyme and Linyi City with 1,000t/a small-scale feed enzyme producershas begun to construct this 15,000t/a phytase and 1,000t/a xylanase in recent choose to stop or suspend expansion,enzyme preparation plant in Weifang. At years. except Continent Biotech andpresent, the company has constructed Guangdong VTR Bio-tech Co., Ltd.,one major workshop with 240 m3 According to Mr. Duan, technical both of which continue capacityfermentation capacity, one distilling engineer of Continent Biotech, enzyme expansion. The latter in July launched aworkshop and two power workshops. In products produced by this technology 20,000t/a feed enzyme base in Innerthis plant, Continent Biotech will have been accepted by users because Mongolia.produce various enzyme preparations of its high quality and short supply. Inlike feed enzyme, edible enzyme and 2008, Continent Biotech’s sales network 9 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  13. 13. CCM Newsletter Industrial Biotechnologies China NewsThe demand for feed enzyme will realize that feed enzyme can greatly production cost. Given this trend, feedcontinue to rise in the future in China, as enhance utilization rate of nutrition in enzyme is expected to be widely used inmore and more feedstuff producers feed, which can efficiently decrease animal feedstuff. Moreover, increasingfeedstuff output in China year on year isanother key driver for increasing use offeed enzyme preparation (FIGURE 4). FIGURE 4: Feedstuff output in China, 2005~2009 160 140 (Unit: million tonnes) 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 est Source: CCM InternationalMeanwhile, increasing numbers of feed enterprises. Actually, feed enzyme enzyme, probiotics, protein, bio-fertilizer,enterprises expect to cooperate with producers should develop new allicin and so forth. The company isfeed enzyme producers, based on technology to improve the quality of equipped with the most advanced liquidhigh-quality feed enzyme and good products, thus increasing and solid-state fermentation facilities inafter-sales service. In this situation, feed competitiveness in the future. the world and ascends into the leadingenzyme producers taking advantage of large-scale biological preparation andhigh-quality products and good Established in 2001, Continent Biotech manufacturing enterprises.after-sales performance can resolve is composed of six manufacturingvarious production difficulties for feed enterprises and mainly engaged in CAS building largest lactase production base in ChinaChinese Academy of Science (CAS) Jiangxi Province, aiming to capture stages, consisting of seven productionestablished a subsidiary Chinese China’s huge lactase market. lines. Upon completion, CASL willAcademy of Science Lactase Co., Ltd. achieve 3,000t/a lactase capacity th(CASL) on Aug.18 , 2009, and started With total investment of USD19.02 (TABLE 5).to construct China’s biggest lactase million, the construction of thisproduction base in Dean County, production base is divided into two TABLE 5: Information of CASL’s new project Item First phase Second phase 10 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  14. 14. CCM Newsletter Industrial Biotechnologies China News Capacity 1,500t/a 1,500t/a Investment USD11.7 million USD7.32 million Start time Aug. 2009 Oct. 2010 Launch time 2010 2011 Source: CCM InternationalLactase, also named as lactase, which can rapidly and efficiently and inefficient technology, thus leadingbeta-galactosidase (β-galactosidase), hydrolyze lactose to glucose and to small profit, given the adversenormally exists in human body in galactose with 6,000u/g, compared with situation of economic downturn at thatintestinal epithelial cells, thereby 3,000u/g or 5,000u/g for existing time. Owing to domestic insufficientcontributing to digestion of lactose products. supply but huge demand, 98% ofpresent in dairy foods. However, large China’s lactase is imported from othernumbers of people in Asia and Africa, At present, China has few lactase countries like US and Japan, etc., asaccounting for 70% of Asia and Africa’s producers, and most of them have small estimated.total as estimated, have a genetic capacity. As reported, the total lactasedeficiency of this enzyme and are production capacity in China was only Thanks to increasing demand for lowunable to digest lactose. 20t/a in 2008. For example, Harbin lactose milk products, the demand for Meihua Biotechnology Co., Ltd. (Meihua lactase in China has been increasing inThe new base will adopt the technology Biotechnology), the only active producer recent years. It was estimated thatof using thalli Mutated Aspergillus Niger in China currently, has lactase capacity Chinese demand for lactase was aboutto produce lactase developed by CAS in of only 8t/a. 2,700 tonnes in 2008, most of which2006, which can enhance lactose was imported from overseas at price ofhydrolysis efficiency and cut down the According to Mr. Zhang, salesman of about USD59,000/t, higher than that ofproduction cost compared to using the Meihua Biotechnology, some USD43,000/t in domestic marketother thalli under the same condition. companies stopped lactase production (FIGURE 5).Besides, it will mainly produce a new in 2008 due to its high production cost FIGURE 5: Output of lactose milk products and demand for lactase in China, 2005~2008 3,500,000 3,000 2700 3,000,000 3,000,000 2300 2,500 2,500,000 2000 2,500,000 1800 2,000 Unit: tonne 2,000,000 2,000,000 1,850,000 1,500 1,500,000 1,000 1,000,000 500,000 500 0 0 2005 2006 2007 2008 Lactose milk products Lactase Source: CCM International 11 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  15. 15. CCM Newsletter Industrial Biotechnologies China NewsFor the sake of better lactose absorption Yang, Deputy Secretary General of 92%, implying promising market for lowwhen consuming dairy products, many Chinese Nutrition Society, the lactose milk, as well as a huge demandcountries add lactase to dairy foods or proportion of Chinese adults suffering for lactase to decompose lactose forother dairy meals. According to Ms. from lactose intolerance is as high as reasonable nutrition absorption. Novozymes expands enzyme productionNovozymes, the world’s biggest Area and expects to launch it by 2010. After the launch of this new base, withindustrial enzymes producer, Through this expansion, Tianjin total investment of about USD53 millionannounced on Aug. 3rd 2009 that it will Novozymes will become Novozymes’ and coverage area of 5,599m2,construct an enzyme preparation third global enzyme production base. Novozymes is predicted to double itsproduction base in Tianjin enzyme preparation capacity in ChinaEconomic-Technological Development (FIGURE 6). FIGURE 6: Main enzyme producers’ market share in the world 22% 47% 6% 21% 4% Novozymes BASF Danisco DSM Others Source: Novozymes’ annual report, 2007According to Mr. Ren, senior manager agro-forestry wastes as a large fields since 1998 (FIGURE 7). And afterfrom Asia Bioenergy Department of agricultural country. Also, Novozymes nearly 10 years’ research andNovozymes, the company is very predicts that the second generation development, it has solved some majoroptimistic about China’s future bioethanol consumption will explosively technical obstacles indevelopment of the second generation grow in 2012. second-generation bioethanolbioethanol, namely using crop wastes production process, and is expected toas raw materials, as China highly Novozymes has been producing various produce second bioethanol enzymes onconcerns about energy supply and enzymes that are widely used in food, a large scale in 2010.security and has abundant supply of brewing, washing and other industrial FIGURE 7: Novozymes enzyme annual sales, 2004~2008 12 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  16. 16. CCM Newsletter Industrial Biotechnologies China News 1,600 1,200 (Unit: million USD) 800 400 0 2004 2005 2006 2007 2008 Source: CCM InternationalEnzymes production cost is an crop wastes to produce fuel ethanol on more and more attention toimportant factor influencing the a large scale. second-generation bioethanol. On Julydevelopment of second-generation 9th 2009, the enzyme preparationbioethanol production. At present, The second-generation bioethanol has branch of China Fermentation Industryenzyme preparation cost accounts for a long value chain, including raw Association held a discussion in35% of total production cost for material collection, transport and Qingdao. Over twenty domestic largesecond-generation bioethanol storage, as well as cellulosic ethanol biotechnology enterprises and researchproduction, and after large-scale production, sales and so on, among institutes attended the meetingindustrialization, the cost proportion will which the cellulose technology can (FIGURE 8). The branch presidentbe reduced to 20-25%. According to reduce production cost largely. And the announced the development plan of theNovozymes’ estimation, the breakthrough of this technology needs enzyme preparation industry. Althoughsecond-generation bioethanol multilateral collaboration to achieve a domestic biotechnology enterprisesproduction cost in China will be mutual development. Novozymes and have made rapid progress in recentUSD2.59 per gallon in 2010, and can be COFCO in early 2009 reached a new years, their enzyme annual output is stillreduced to USD1.5 per gallon by 2015, cooperation agreement with Sinopec to much less than multinationalwhich will be very competitive compared initiate large-scale commercial enterprises’.with gasoline price (USD2 per gallon). production by using crop wastes as raw materials to produce second-generationAccording to Mr. Steen Riisgaard, CEO bioethanol.of Novozymes, there is only one stepaway for the company to make use of Chinese government has been paying FIGURE 8: Major enzyme producers’ capacity in 2008 13 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  17. 17. CCM Newsletter Industrial Biotechnologies China News 10,000 8,000 8,000 6,500 6,000 6,000 (Unit: t/a) 4,000 4,000 2,000 0 Hunan Jinshi Zhengzhou Jiangyin Henan Yangshao Fuyuan Baishenglong Source: CCM International Note: Hunan Jinshi Group Co., Ltd. Zhengzhou Fuyuan Biotechnology Co., Ltd. Jiangyin Baishenglong Bioengineering Co., Ltd. Henan Yangshao living to turn the engineering Co., Ltd. Hunan Yuyuan expands in microbial fertilizerHunan Yuyuan Bio-technological Co., microbial fertilizer has advantages inLtd. (Hunan Yuyuan, located in Hunan Hunan Yuyuan’s expansion of microbial ecological protection, crop qualitynational bio-industry base Changsha fertilizer is attributed to at least four improvement and fertilizer efficiencyCity, Hunan Province), a leading reasons. enhancement, as microbial fertilizer canenterprise of microbial fertilizer industry, increase beneficial bacteria in soil tosigned an agreement with Shenzhen Firstly, Chinese government has help crops use nutrients. According toFortune Venture Capital Co., Ltd. formulated some policies to promote the Fertilizer Testing Center of Ministry of(Shenzhen Fortune Venture) to obtain extensive use of microbial fertilizer. For Agriculture, farm products output cancapital for capacity expansion and R&D example, the first document release by increase 12% ~20% by using microbial ststrengthening on Aug. 21 2009. Chinese government this year stipulate fertilizer. So in vegetable growing to strengthen the protection and regions like Shouguang, farms useActually, after establishment, Hunan improvement of soil, and to promote and microbial fertilizer more and moreYuyuan had invested about USD15 the use of microbial fertilizer in the widely.million to build a 10,000 t/a.microbial whole country.fertilizer production line. This production Furthermore, the average utilization rateline has the largest investment and Secondly, some farmers have begun to of common fertilizer is only 20%~30%,largest production capacity, and its accept and use microbial fertilizer, while that of microbial fertilizer is moretechnical level and equipment are the which has brought tremendous higher , for example, the nitrogen fixedmost advanced in China. And currently, opportunities for microbial fertilizer in rhizobia can almost all be absorbedit has putt high concentrations of manufacturers. by plants.bacteria powder into commercial massproduction. Compared with common fertilizer, More and more farmers realize 14 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  18. 18. CCM Newsletter Industrial Biotechnologies China Newsimportant role of microbial fertilizer inpractical production, so microbial Fourthly, microbial fertilizer has a large Currently, there are more 500 microbialfertilizers have become more and more profit margin, compared with common fertilizer companies in China (TABLE 6),popular than common fertilizers with fertilizer. And currently, only a few have annual output is about 5 million tonnes,farmers. been engaged in microbial fertilizer and the application areas are nearly 6 production, and thus they have huge million hectares. Microbial fertilizerThirdly, the current status of the soil development potential to capture market product categories continue to increase,gives business opportunities to share amid this less intense market so far, the products registered in themicrobial fertilizer manufacturers. The competition. The large formal Ministry of Agriculture are divided intosoil compaction and salinization have manufacturers, in particular, like Hunan two major categories of antimicrobialbecome widespread, as farmers have Yuyuan, are expected to work hard and and microbial fertilizer including 11been using nitrogen fertilizer for a long make great progress on this field, varieties. In the next five years, Chinastime. Compared with common fertilizer, depending on their sufficient funds and microbial fertilizer annual output ismicrobial fertilizer not only can break strong scientific and technological expected to reach 8 million ~ 10 millionpotassium and phosphate and fix background. As for other small tones. And it is expected that microbialnitrogen, but also can greatly increase companies, like family workshops, they fertilizer industries will play a morefertilizer utilization rate, so it is are running on a small scale and weak important role in agricultural production.increasingly favored by farmers. in competitiveness. TABLE 6: Some domestic microbial fertilizer companies in 2008 Company Capacity (t/a) in Location Hebei Fuhua Kangtute Environmental Co., Ltd. 100,000 Shijiazhuang, Hebei Hebei Juwei Biological Engineering Co., Ltd. 100,000 Baoding, Hebei Dezhou Sunshine Biotechnology Co., Ltd. 100,000 Dezhou, Shandong Dalian Shibeide Biotechnology Co., Ltd. 100,000 Dalian, Liaoning Shenyang Shennongren Biochemical Engineering Co., Ltd. 30,000 Shenyang, Liaoning Liaoning Yuanheng Biotechnology Co., Ltd. 30,000 Chaoyang, Liaoning Beijing Wlong Technology Co., Ltd. 30,000 Beijing, Beijing Heilongjiang Suihua Nongken Chenhuan Biology Science & Technology Co., Ltd. 20,000 Suihua, Heilongjiang Shanxi Yi’an Biological Engineering Co., Ltd. 5,000 Yuncheng, Shanxi Beijing First Biological Engineering Co., Ltd. 5,000 Beijing Source: CCM InternationalAlthough, due to the financial crisis in economy see rapid development and will increase the demand for microbial2008, market demand for microbial increase in per capita income, Chinese fertilizer. Meanwhile, the new industryfertilizer production has experienced government will increase the system will also prompt domesticweak growth. In the long run, with the investments in microbial fertilizer, which microbial fertilizer industry to reshuffle. SK sells SCR enzyme technology to ChinaSK Holding Co., Ltd. (SK Holding, (SCR) enzyme technology to Qingdao Company (China Power) in late Julyheadquartered in Seoul, South Korea) Huatuo Technology Co., Ltd., a 2009, which will enable China Power tosold its Selective Catalytic Reduction subsidiary of China Power Investment be the first Chinese company to apply 15 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  19. 19. CCM Newsletter Industrial Biotechnologies China Newsenzyme technology into industrial power plants and chemical plants and and sulphur dioxide, etc, SCR enzymeexhaust emissions treatment at home. enhance its application in China in the technology has higher catalysis near future. efficiency and lower temperature, andSCR enzyme technology can be used to can reclaim more kinds of exhaustclean up the exhaust emissions like Based on varieties of Bacillus, SCR emissions, even solid waste.carbon dioxide, sulfur dioxide, carbon enzyme technology uses enzyme asmonoxide, etc. Researched by SK catalysts, which enjoys higher At present, there are several kinds ofHolding since 1996, this technology has purification efficiency, simpler operation exhaust emissions treatmentbeen successfully used in South and lower cost compared with the other technologies in China, (TABLE 7), suchKorea’s power plants after 2003, exhaust emission treatment as carbon dioxide reclaiming technology,accounting for 20% of the country’s total technologies in China, thus it’s expected which has played a growingly importantmarket share currently. Besides, SK to be applied in a variety of recycling role in recent years due to theHolding signed a cooperation and waste treatment enterprises. greenhouse effect caused by risingagreement with Germany-based EnBW carbon dioxide emission. But it can onlyGroup in July 2007 and began to For instance, compared with SCR treat one or two kinds of waste gases,explore the overseas markets. chemistry catalysts technology thus restricting its wider application. commonly adopted in China, whichInsider reveals that SK Holding will uses chemicals like vanadium pentoxidecooperate with more companies to and titanium dioxide as raw materials topromote this enzyme technology in deal with pollutants of nitrogen oxide TABLE 7: Major exhaust emission technologies in China Technology Main adopters Launch timeZH active carbon adsorbing organic exhaust gases Hangzhou South Environment Protective Coating Equipment 1993purifying & recycling treatment technology Co., Ltd. Jiangsu Zhongke Energy-Saving Environmental ProtectionSCR chemistry catalysts technology 2006 Technology Co., Ltd.Carbon dioxide reclaiming technology Chengdu Demei Engineering Technology Co., Ltd. 2001High-voltage electrostatic trapping technology Gansu Kejin Environmental Technology Co., Ltd. 2002Phosphorus emission reclaiming technology Yunnan Nanlin Group Co., Ltd. 2008 Source: CCM InternationalWith the rising awareness of standard of ‘Absorption Gas Cleaner for which satisfies China’s demand forenvironmental protection, more and Industrial Emission’, which clearly environmental technologies, is expectedmore Chinese countries intend to seek stipulates the technical standards for to be accepted by more enterprises.new technologies to reduce pollution. In popular waste treatment devices.2008, Chinese government issued a Therefore, SCR enzyme technology, BIO-BASED CHEMICALS China’s citric acid export volume up but price down 16 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  20. 20. CCM Newsletter Industrial Biotechnologies China NewsDespite US and EU’s anti-dumping year to 393,616 tonnes in the first seven the same period of 2008 since earlyduties on Chinese citric acid in 2009, months of 2009 (FIGURE 9). Except to 2009.China’s citric acid export volume has EU and US, export price of citric acid tostill kept increasing, up 1.2% year on other countries has slipped largely over FIGURE 9: China’s citric acid export volume, Jan. ~Jul. 2009 80,000 68,707 70,000 62,089 60,624 62,905 60,000 53,910 48,181 50,000 (Unit: tonne) 37,200 40,000 30,000 20,000 10,000 0 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Source: China CustomsRespectively since Jun. 2008 and Sep. have been endeavoring to develop Although Ministry of Commerce2008, EU and US have begun to levy other new and large markets like India, Administration has executed Exporthigh anti-dumping duties on China’s key Mexico, Thailand and Indonesia etc. License Administration on domesticcitric acid producers like Anhui BBCA after the anti-dumping duties had been citric acid exporters since early 2009,Biochemical Co., Ltd. and Shandong implemented. Actually, India has totally this Export License Administration withTTCA etc., which erodes Chinese imported 32,424 tonnes citric acid from relatively low requirements for domesticplayers’ price advantage in these China during the first seven months in citric acid producers couldn’t efficientlymarkets. 2009, up 39% over the same period of restrain pernicious price competition 2008, which makes it the largest among them. In order to enlarge marketAs an export-oriented product, importer of Chinese citric acid currently. share in oversea markets with nohomemade citric acid’s encountering anti-dumping duties, domestic citric acidanti-dumping sanction from EU and Prices of homemade citric acid exported exporters choose to cut down the price.USA has seriously impacted domestic to EU and US have stayed at relativelycitric acid export, because nearly 40% high level of around USD1,000/t, due to Besides, decreasing raw material priceof China’s citric acid export was to EU anti-dumping duties during this period, also resulted in price fall of domesticand US before. According to statistics but export prices to other countries like citric acid. Corn and sulphuric acid arefrom China Customs, in the first seven Southeast Asia, Africa and South key raw materials for citric acidmonths of 2009, US citric acid import America saw a big drop, ranging from production. In H1 2009, corn pricevolume from China has decreased by USD680/t and USD820/t, remained similar to that in H1 2008, but87.6% and EU import down 28%. USD100~200/t lower than that in the sulphuric acid price has plummeted to first seven months of 2008. around USD30/t from USD245/t sinceHowever, domestic citric acid producers the breakout of global financial crisis. At 17 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  21. 21. CCM Newsletter Industrial Biotechnologies China Newspresent, sulphuric acid price is still at in China. Once both sulphuric acid and and has exported around 80% of its totallow level of USD36/t and corn price corn price rise in the following months, output on average in recent years.keeps stable at around USD234/t in citric acid price may also be pushed up However, its production has beenNortheast China. slightly in the market. restrained by the government due to high pollution during citric acidCitric acid export price has kept stable China has been the largest citric acid production.currently, and it is hard to raise the price producer with total output of arounddue to current citric acid surplus supply 750,000 tonnes per year in the world, VC export price risesAverage export price of Vitamin C (VC) Customs (TABLE 8), in the first seven downtrend. The impacts of weakhas climbed up in the first seven months months of 2009, VC average export domestic demand have been partlyof 2009, continuing an uptrend price has reached USD10,297/t, up offset by the high VC export price.compared to the same period last year. 29.6% compared to the same period last year, while most of the other vitaminAccording to statistics from China export prices have experienced TABLE 8: China’s VC export situation, Jan~ Jul, 2009 Item Jan - Jul, 2008 Jan - Jul, 2009 Growth rates (%) Export (tonne) 51,632 47,905 -7.2 Value (USD) 410,165,661 493,274,479 20.3 Average (USD/t) 7,944 10,297 29.6 Source: China CustomsThe main reasons for VC export price low production cost.rise are as follows: The four biggest domestic VC In recent years, with strong enterprises include (FIGURE 10)Firstly, China has become the world’s competitiveness of China’s VC, some Northeast Pharmaceutical Group Co.,VC production base, thus enabling multinational corporations have Ltd (NPC), North China Pharmaceuticaldomestic VC enterprises to price the gradually stopped VC production. As a Group Co., Ltd (NCPC), Chinaproducts. result, global dependence on Chinese Shijiazhuang Pharmaceutical Group Co., VC has gradually increased. For Ltd (CSPC) and Aland (Jiangsu)As an important exporter of VC, China example, China VC export volume was Nutraceutical Co., Ltd. (Aland). The VChas strong competitiveness in global VC less than 80,000 tonnes in 2007, but it export prices of these four enterprisesmarket. China produces VC by using increased to 85,239 tonnes in 2008. By all stayed at a relatively high level oftwo-step fermentation process, which the end of 2008, China VC sales value about USD1,000/t, a big upthrusthas reached the world-advanced level had accounted for 86% of total VC sales compared with the same period lastand thus being prohibited for export. value in US market. At present, about year, signifying their strong pricingBased on the technology edge, China’s 80% of the world’s VC products are power.VC has good product quality and enjoys sourced from China. 18 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  22. 22. CCM Newsletter Industrial Biotechnologies China News FIGURE 10: Capacity of major domestic VC enterprises in 2008 40,000 35,000 30,000 25,000 (Unit: t/a) 20,000 20,000 18,000 10,000 0 CSPC NPC Aland NCPC Source: CCM InternationalSecondly, VC is mainly used in excellent sales performance after the VC enterprises had been in fullindustries of pharmaceuticals, health outbreak of H1N1 influenza around the operation in the first five months thisfood, and food additives, etc. that world, as VC preparation can effectively year. With sufficient VC supply in theprovide necessary daily products, thus prevent influenza. Besides, many new domestic markets, its price onlyless being affected by economic kinds of VC composite preparations can fluctuated slightly in early June.downturn. And VC only constitutes a also effectively enhance immunity and However, to curb the slight price declinevery small proportion of its downstream prevent influenza, so they had sold well this June, the four biggest VCproducts’ cost, so downstream clients from last winter to this spring, thus enterprises decided to stop productionare not sensitive to the price change of promoting the soaring demand of VC. from July to September. As a result, VCVC. price has risen in July, and is expected In light of huge VC demand and its high to maintain uptrend in the near futureThirdly, VC products have seen prices currently (FIGURE 11), the four with reduced supply. FIGURE 11: Domestic VC export prices, Jan. – Jul. 2009 19 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  23. 23. CCM Newsletter Industrial Biotechnologies China News 10,800 10,600 10,551 10,558 10,400 10,415 10,409 10,202 (Unit: USD/t) 10,200 10,000 10,033 9,903 9,800 9,600 9,400 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Source: CCM InternationalIn the long run, VC export price may autumn and winter this year. Secondly, small and medium-sized companiesmaintain relatively high level, attributed the price of corn, one of VC’s raw plan to produce VC, their products onlyto the following factors. Firstly, H1N1 materials, may keep at high level sell in domestic market, so theirinfluenza may continue its prevalence because of current severe drought in expansions can not affect VC exportfor a long time and may break out in the China. Thirdly, although some domestic price. Jianding Biotechnology establishedJiangsu Jianding Biotechnology Co., Ltd. benefits by reutilizing waste from crab shell as raw materials, which leads(Jianding Biotechnology), a company production. to heavy metal residues and largenewly established on Aug. 10th 2009, amounts of ash contained inhas initiated the construction of For one thing, glucosamine, as an glucosamine products. Withfirst-phase production lines of 3,000t/a important health product, is widely used vegetarianism spreading over Europeglucosamine and 12,000t/a activated as nutritional supplements for articular and US, enabling citric acid-basedcarbon, which will be launched by the cartilage treatment, and is the only glucosamine products to becomeend of 2009. health product approved by the medical greatly popular among consumers, community and nutrition research glucosamine products produced byJianding Biotechnology has institutions in US and Europe, for its Jianding Biotechnology using thisindependent technology for therapeutical effect on bone and joint technology is predicted to have a highlyco-production of glucosamine and diseases. The market value of competitive position in health productsactivated carbon. Adopting this glucosamine and its downstream market as this technology is developedtechnology, glucosamine can be products like health products and independently at home, and theextracted from citric acid waste, and pharmaceuticals is estimated to reach overseas market has not obtained thethen the waste is further processed to USD7 billion. technology up to now.produce high-quality activated carbon. For another, co-production ofThis technology is believed to create Currently, domestic glucosamine glucosamine and activated carbon canhuge economic and environmental production mainly use shrimp shell and reduce environmental pollution. With its 20 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com
  24. 24. CCM Newsletter Industrial Biotechnologies China Newsactivated carbon capacity accounting for pollution. Therefore, using this With entry into health products industrymore than 1/3 of global total, China is technology can greatly relieve the in the 1980s, China has rapidlythe world’s largest producer of activated environmental pressure. developed in this field in the pastcarbon, a major chemical material with decade. By the end of 2007, China hasannual consumption volume of more It is thus expected that Jianding approved more than 8,900 varieties ofthan one million tonnes in the world. But Biotechnology will have a very important health products. And more than 1,640currently, large quantities of high-quality position in China’s health product health product manufacturers havetimber and bamboo are consumed at industry, and will promote China’s achieved total production value of overhome to produce activated production overall health product industry to USD17 billion annually (FIGURE 12).every year, leading to high energy develop more eco-friendly.consumption and severe environmental FIGURE 12: Glucosamine output in China, 2002~2007 10,000 9,000 8,000 7,000 (Unit: tonne) 6,000 5,000 4,000 3,000 2,000 1,000 0 2002 2003 2004 2005 2006 2007 Source: CCM InternationalSome enterprises from other industries China Health Care Association, said integration in health product industry,are very optimistic on the future that some Japanese automobile which will change glucosaminedevelopment of China health product companies with sufficient funds are manufacturers’ competitive landscape inindustry. In the end of 2008, , Wuliangye waiting for an opportunity to enter health China (TABLE 9).Group Co., Ltd., a well-known liquid product industry in China.brand, cooperated with GiantCorporation to enter health care market. ‘Food Safety Law’ and ‘Rules of Supervision and Administration onMr. Wang Dahong, Secretary General of Health Food Products’ will also promote TABLE 9:Information of glucosamine manufacturers in China, 2008 Number of Number of Locations Capacity 08, t/a Output 07, t Capacity 08 Output 07 manufacturers, ‘08 manufacturers ‘08 Zhejiang 9 7,150 3,430 33.30% 36.80% 38.00% Jiangsu 9 4,960 2,645 33.30% 25.50% 29.30% 21 www.cnchemicals.com Copyright CCM International Ltd. Email: econtact@cnchemicals.com

×