Xinhecheng Sinopec, proposed liquid methionine project

On January 3, Zhejiang Xinhecheng Co.
, Ltd.
(hereinafter referred to as Xinhecheng) announced that the company recently signed an agreement with China Petroleum & Chemical Co.
, Ltd.
to jointly establish a joint venture company for the construction of 180,000 tons/year liquid methionine (purified) production plant, with a total investment of about 2.
594 billion yuan
.

It is reported that the name of the proposed joint venture is tentatively named Ningbo Zhenhai Refining and Chemical Xinhecheng Biotechnology Co.
, Ltd.
, and the two parties have agreed to contribute about 389 million yuan each by December 31, 2025, each holding 50%
of the shares.

Xinhecheng said that this investment aims to explore the cooperation between the two sides in resources and technology, further exert the company's technical advantages in the field of methionine, and the steady progress of the investment project will be conducive to the subsequent deepening of
cooperation between the two parties in the field of high-end fine chemicals.

According to reports, methionine, as the first limiting amino acid of non-gluten protein, has greater economic properties
for poultry, dairy cows, pigs and aquaculture.
In the past five years, the development of China's methionine industry has accelerated, and production capacity and supply have continued to tilt
towards China.
With the continuous recovery of the global economy and the rapid economic development of emerging countries, the demand for meat has grown steadily, global feed production has increased simultaneously, and the demand for methionine has also increased
significantly.