Can Dentons restructure the return of the king?

In 1956, the Japanese invented the industrial method to produce lysine, and in 1965, ajinomoto plant in Kyushu, Japan, began producing feed-grade lysineFor the next half century, the company was the market leader in fermented amino acids (lysine, sucrose, tryptophan) and once occupied 60% of the world market share of lysinein the90s, ADM relied on its strengths in starch and its deep-processed products to enter the field of lysine production, while there was also a plant in Indonesia that was established by a local Indonesian company in conjunction with Cheil Jedang, now the Chij Group (CJ)dhLsince 2000, as the living standards of new economies (e.gChina, Brazil, etc.) have improved, demand for meat has increased again, and industrial feed in these countries has grown strongly, and feed formulation technology has improved considerably, especially in the context of global protein raw material tension, the value of feed amino acids has become more obviousFeeding amino acids ushered in a new round of expansion, and the application of the variety has gradually diversified, the amount of sucrose and tryptophan has also increased significantlydhLin 1990, Guangxi Guiyuan lysine plant officially put into operation, this is China's first domestic technology to produce lysine enterprisesAlmost at the same time, Fujian's Quanzhou Daquan Lysine Co., Ltdused the technology of Thailand's Zhengda Group to start the industrialproduction of lysineBefore 2000, although China's feed-grade lysine put into production more manufacturers, but for various reasons, production capacity is small, production can not meet domestic demand, still rely on a large number of importsDhLthe true large-scale production of lysine in China began in 2000dhLset of adults, Jinsheng Yuzhen dhL in 2000 domestic including Guangxi Guiyuan, Fujian Daquan, Sichuan flavor of the vegetarian, including enterprises, the total production capacity of 60,000 tons, production of about 30,000 tons This year, Jilin Changchun Dacheng Group completed 15,000 tons of lysine project At that time, the global lysine production capacity of about 800,000 tons, the world's largest lysine manufacturer ADM production capacity of 250,000 tons, miso production capacity of 190,000 tons Dentons Group's 15,000-tonne capacity, even at full capacity, was only a bull's-and-a-half-time market, but perhaps no one could have thought that Dentons would be a leader in the lysine market in 10 years' time The key to dhL fermented amino acid production technology is the bacteria The methods of industrial production lysine are microbial fermentation, enzyme, protein hydrolysis and chemical synthesis Among them, microbial fermentation technology production lysine is currently the international lysine industry is commonly used technology, the production of raw materials mainly starch, molasses, including pre-fermentation technology and follow-up processing technology two parts, the production of products for lysine hydrochloride In order to reduce the problems such as large sewage discharge and heavy environmental pollution in the lysine hydrochloride production process, in the 1990s, the German company Evonik (Degusay) developed the production technology of lysine sulfate (65% lysine) Changchun Dentons Group after a long period of research and development, after Evonik successfully developed lysine sulfate production technology, and in the second half of 2003 into production DhL Dacheng selected a stable high-yield strain of lysine, increased the acid yield from 13.5% to 14.0%, 0.5-2 percentage points higher than similar technology in the same period abroad, the conversion rate was raised from 40% to 42%, 1-3 percentage points higher than similar technology in the same period abroad; The successful development of the project technology has greatly improved the backward situation of China's amino acid industry, by the end of 2003, has established an annual output of 40,000 tons of production plant 1, in 2007 to establish an annual output of 180,000 tons of two industrialization plants dhL began to expand production significantly in 2005, with a production capacity of 360,000 tons/year, and with the substantial increase in Dentons production, China's lysine exportvolume exceeded imports for the first time, ending the long-term dependence on imports of lysine and becoming an exporter of lysine In 2010, there were six lysine manufacturers in China with a production capacity of 650,000 tons, and the proportion of China's lysine production in global production increased year by year, from 11% in 2003 to 40% in 2010 In 2011, Dentons' production capacity reached 800,000 tons, the annual export of lysine 160,000 tons, the export country reached 67 countries, the world's largest market share of lysine production enterprises dhL Dentons Group's main business in 2001 was listed in Hong Kong, the assets of listed companies, together with the assets of unlisted enterprises totaled 23 billion yuan, the annual corn processing capacity of 3.8 million tons At the peak of business operations, the annual output value reached 50 billion yuan in 2012 and 829 million yuan in taxes paid DhL the hidden dangers behind the glory of dhL 2004, China's lysine industry ushered in a climax, the number of domestic manufacturers reached 14, with a production capacity of 430,000 tons The old enterprises to expand production, new entrants to enter, foreign companies also began to the Chinese market, trying to local production, in April 2004, South Korea's Hijie Group China-owned company - Xijie (Chatcity) Biotech Co., Ltd was established in Liaocheng, design capacity of 60,000 tons per year In 2010, the global lysine entered a new round of capacity expansion cycle, on the one hand, leading enterprises in the expansion of production capacity, new entrants capacity release, the overall supply continues to increase, the number of global lysine manufacturers from 13 in 2010 to 23 in 2013, production capacity from 1.8 million tons to 3.59 million tons;DhL overcapacity and the dispersion of competition pattern is leading to a sharp decline in prices on the one hand, on the other hand, corn starch (the initial processing products of corn) is the main raw material for the production of lysine, 2012-2014, China's corn prices remained at a high level, corn prices in the first half of 2014 hit a record high, corn prices pushed up lysine production costs, is one of the factors driving industry integration With corn prices high, lysine prices continued to decline after 2012, and the lysine industry continued to lose money from the fourth quarter of 2013 to the first three quarters of 2014 dhL under the double squeeze of policy and market cycle, not only the amino acid industry is in a loss quagmire, upstream corn deep processing industry is also in a loss-making state, Dentons Group is mainly engaged in the manufacture and sale of corn refined products, corn annual processing capacity of 3 million tons, upstream and downstream at the same time in the loss, which is undoubtedly worse for Dentons Group dhL sales revenue of HK$5.63 billion and loss of HK$1.27 billion in 2013, and HK$3.31 billion in 2014 sales of amino acid business, a loss of HK$1.39 billion dhL in 2004, Dentons Group from corn extraction biochemical alcohol project put into operation, in 2006 to invest 1 billion yuan annual production capacity of 200,000 tons of new chemical alcohol production line into the trial phase, the end of 2007 launched a multi-biochemical alcohol products Never thought of the global financial crisis in 2008, after a few years of low oil prices in the low range, biochemical alcohol has become a big economic burden, year-round loss state Dentons Group's biochemical alcohol project lost HK$3.87 billion in 2013 and HK$620 million in 2014 DhL March 2014, Dentons Group, taking into account the current operating environment of the lysine business, in particular the market demand and average selling price of lysine products, and the relocation of production facilities (including a lysine production facility) located in the Green Park in Changchun City, the Group decided to reduce the annual production of lysine products as of December 31, 2014, and the production facility of lysine was discontinued by the production of 200,000 tons of lysine production, operated by Changchun Baocheng Biochemical Development Co., Ltd In addition, due to adverse market conditions, the Group's bio-chemical alcohol production was also suspended By the first quarter of 2015, Dentons Group faced a lack of funds and completely discontinued production due to industry competition and Dentons Group's own capital position dhL Red Plum MSG with Dentons Group can be said to be a pair of difficult brothers, although the main business industry is different, can be in the same corn deep processing industry, the problem is much the same On May 28, 2014, Shenyang Hongmei Group, which swept the country in the 1980s and 1990s, was ruled bankrupt by a court Red plum brand MSG is China's FIRST well-known trademark of MSG industry, according to data, in 2010 China's MSG production has reached 2.56 million tons, domestic consumption of more than 1.4 million tons a year, in the contradiction between supply and demand, the market price of MSG has been declining since 2010 At the same time, due to the high pollution of MSG industry, high energy consumption, the industry environmental pressure long-term existence Red Mei Group in 2007 had planned to reform and attract business, but for various reasons were unable to do so dhL and the plight of Red Plum and Dacheng in sharp contrast, is plum biology, the company started with MSG, into the amino acid field is feng shui, just a few years has exceeded the old strong-spirited mesio to become a leader in Susine, in 2014 is the high-profile acquisition of Iskin biology, through mergers and acquisitions, plum biology in the fermented amino acid industry status has been unprecedented dhL Phoenix Nirvana Bath Fire Reborn dhL in the context of the market re-segmentation and rebalancing, mergers and acquisitions become the most direct means for enterprises to break through resource and market boundaries and obtain strategic expansion, and the acquisition of Yipin is only the beginning of the restructuring of amino acid enterprises dhL According to a report in the Changchun Daily in April 2015, we can see that the support idea of Changchun government departments for Dacheng is to support Dacheng's relief and restructuring, and achieve stable growth as soon as possible One-handed start and stabilize production, one-handed asset restructuring, and strive to make substantial progress in the first half of the year DhL june 10, 2015, Dentons Biochemicals and Jilin Province Transportation Investment Group signed a letter of intent on possible subscription matters On August 31st, Dentons announced the placement of 3.135 billion shares and 11.13 billion shares to Jilin Province Modern Agricultural Industry Investment Fund (which is wholly owned by Changjitu Investment Co., Ltd., and 91.11% of Changjitu Investment Co., Ltd.) The $0.9 billion convertible bond, with subscription and conversion prices of $0.23, was 31.34% off Friday's closing price, with a net gain of about $1.8 billion, to be used as business development, relocation costs and general working capital Upon completion of the new share placement, the subscriber and its co-activists hold 49% of the company's enlarged share capital, and if the share exchange is exercised, the holding will increase to about 70%, and dentons' control of the chemical and biological will change dhL No matter what the ownership of the end, the short-term Dentons Group's financial difficulties and non-performing assets situation is expected to improve, after the restart, the amino acid industry pattern will be what changes?dhL According to Boasia and News, some lysine manufacturers are still expanding in 2015, and China's lysine production capacity is likely to reach 2.36 million tons by the end of 2015, up 6% YoY Overall, China has the production capacity of 15 manufacturers, the future discontinued manufacturers still have the possibility of resumption of production, lysine will still be in fierce competition, this round of capacity integration still need a certain time DhL Dentons Dehui plant annual output of 450,000 tons of lysine plant is still the largest production line in China, plum blossoms, Iskin, Xijie, Chengfu, gold corn, Cofco and other mainstream manufacturers lysine production capacity is second to Dentons As the former king of amino acids, Dentons through Nirvana, in the face of industrial integration, will take what strategy, whether can re-emerge, we wait and see dhL 1956, the Japanese invented the industrial method to produce lysine, in 1965, Ajinomoto plant in Kyushu, Japan began production of feed-grade lysine For the next half century, the company was the market leader in fermented amino acids (lysine, sucrose, tryptophan) and once occupied 60% of the world market share of lysine in the 90s, ADM relied on its strengths in starch and its deep-processed products to enter the field of lysine production, while there was also a plant in Indonesia that was established by a local Indonesian company in conjunction with Cheil Jedang, now the Chij Group (CJ) dhL since 2000, as the living standards of new economies (e.g China, Brazil, etc.) have improved, demand for meat has increased again, and industrial feed in these countries has grown strongly, and feed formulation technology has improved considerably, especially in the context of global protein raw material tension, the value of feed amino acids has become more obvious Feeding amino acids ushered in a new round of expansion, and the application of the variety has gradually diversified, the amount of sucrose and tryptophan has also increased significantly dhL in 1990, Guangxi Guiyuan lysine plant officially put into operation, this is China's first domestic technology to produce lysine enterprises Almost at the same time, Fujian's Quanzhou Daquan Lysine Co., Ltd used the technology of Thailand's Zhengda Group to start the industrialproduction of lysine Before 2000, although China's feed-grade lysine put into production more manufacturers, but for various reasons, production capacity is small, production can not meet domestic demand, still rely on a large number of imports DhL the true large-scale production of lysine in China began in 2000 dhL set of adults, Jinsheng Yuzhen dhL in 2000 domestic including Guangxi Guiyuan, Fujian Daquan, Sichuan flavor of the vegetarian, including enterprises, the total production capacity of 60,000 tons, production of about 30,000 tons This year, Jilin Changchun Dacheng Group completed 15,000 tons of lysine project At that time, the global lysine production capacity of about 800,000 tons, the world's largest lysine manufacturer ADM production capacity of 250,000 tons, miso production capacity of 190,000 tons Dentons Group's 15,000-tonne capacity, even at full capacity, was only a bull's-and-a-half-time market, but perhaps no one could have thought that Dentons would be a leader in the lysine market in 10 years' time The key to dhL fermented amino acid production technology is the bacteria The methods of industrial production lysine are microbial fermentation, enzyme, protein hydrolysis and chemical synthesis Among them, microbial fermentation technology production lysine is currently the international lysine industry is commonly used technology, the production of raw materials mainly starch, molasses, including pre-fermentation technology and follow-up processing technology two parts, the production of products for lysine hydrochloride In order to reduce the sewage emissions and heavy environmental pollution in the lysine hydrochloride production process, in the 1990s, the German company Evonik (Degusay) developed lysine sulfate (65% lysine) production techniques.