Blue Star AndesU's announcement on the new liquid methionine plant

January 17, 2018, Blue Star Andesu Co., Ltd(the "Company") announced the new liquid methionine plant: the Company intends to build a new liquid methionine plant project in Nanjing, China (hereinafter referred to as "this project"), the project is located in Nanjing, China, the site of the six-in-a-line chemical park, can make full use of the existing Nanjing plant construction and operation experience, share the operation management team with the existing Nanjing plant, share part of the facilities (administration, warehousing logistics, public utilities, etc.) The project has an investment budget of approximately US$490 million, financed by the Company's own funds, and is expected to be put into operation by mid-2021 with an annual production capacity of 180,000 tons of liquid methionineAccording to the preliminary business plan, the recovery period of the project after the project is put into operation is about 4 years5rX
According to Andesu's calculations, assuming that 0.20% methionine is added to each unit of weight feed, about 23% of the total production cost will be saved, i.emethionine can create a value of about 8 times its own price for customersAs a result, the risk of methionine being replaced is low and customers are less sensitive to methionine price increases5rX
Historically, global demand for methionine has been growing at an annual rate of about 6% in the past and is expected to continue at an annual rate of about 6% for the next few yearsAt present, the market supply of methionine mainly consists of solid methionine and liquid methionineLarger, more automated customers prefer to use liquid methionineIt is estimated that the current global use of liquid methionine accounted for about 40% of the total use of methionine, while in the United States, Mexico and other countries, the use of liquid methionine accounted for more than 60%With the gradual integration of the poultry industry in developing countries such as China and India, as well as the upgrading of aquaculture industrialization and automation levels, the demand for liquid methionine will grow faster than solid methionine5rXJanuary 17, 2018, Blue Star Andy Su Co., Ltd (hereinafter referred to as "The Company") announced the new liquid methionine plant: the Company intends to build a new liquid methine plant project in Nanjing, China (hereinafter referred to as "This Project"), the project is located in Nanjing, China, the site, can make full use of the existing Nanjing plant construction and operation experience, share the existing Nanjing plant operation management team, share part of the facilities The project has an investment budget of approximately US$490 million, financed by the Company's own funds, and is expected to be put into operation by mid-2021 with an annual production capacity of 180,000 tons of liquid methionine According to the preliminary business plan, the recovery period of the project after the project is put into operation is about 4 years 5rX
　　According to Andesu's calculations, assuming that 0.20% methionine is added to each unit of weight feed, about 23% of the total production cost will be saved, i.e methionine can create a value of about 8 times its own price for customers As a result, the risk of methionine being replaced is low and customers are less sensitive to methionine price increases 5rX
　　Historically, global demand for methionine has been growing at an annual rate of about 6% in the past and is expected to continue at an annual rate of about 6% for the next few years At present, the market supply of methionine mainly consists of solid methionine and liquid methionine Larger, more automated customers prefer to use liquid methionine It is estimated that the current global use of liquid methionine accounted for about 40% of the total use of methionine, while in the United States, Mexico and other countries, the use of liquid methionine accounted for more than 60% With the gradual integration of the poultry industry in developing countries such as China and India, as well as the upgrading of aquaculture industrialization and automation levels, the demand for liquid methionine will grow faster than solid methionine 5rX