Leading VB12 producer Hebei Yuxing ordered to suspend production 12-11-2017

The worldwide leading vitamin B12 manufacturer Hebei Yuxing was ordered by the Chinese local government to suspend production from November 29 onwards. On the one hand, the company had experienced an unannounced reexamination by authorities, which did not approve the waste discharge technology in regards to environmental pollution. On the other hand, the heating season in China has begun, forcing especially pharmaceuticals manufacturers and other major-polluting industries to suspend production in the winter months, when heating processes are already polluting the air significantly.



 


According to local Bureau of Environmental Protection in Hebei Province, the company Hebei Yuxing is only allowed to resume production after receiving the approval of authorities. An estimated time has not been announced yet. 


Hebei Yuxing produces food ingredients and additives for the Food and pharmaceuticals industry. These main products besides vitamin B12 include Glucose Syrup, Oral Glucose, Corn Plumule, Feed Powder, Dry Corn Gluten, and Corn Starch. 

 

China’s heating season

The heating season in the northern part of China, where Hebei Yuxing is located, is traditionally ranging from November to March. Hence, in this season, many high-polluting industries, like pharmaceuticals, are forced to suspend their production from the middle of November 2017 to the middle of March 2018, in order to counter the high pollution caused already by the heaters. Many enterprises are not allowed or only partly allowed to produce drugs and pharmaceutical products for about 4 months in total, which is one quarter of the year.


The government has published an announcement in early November, that states the local authorities in China’s northern provinces and cities should decide which productions are going to be suspended, the duration of the suspension, and the depth of the suspension for pharmaceutical enterprises.


According to the announcement, active pharmaceutical ingredient (API) production in China’s northern regions must be suspended if volatile organic compounds (VOCs), are discharged. Notably, China is a major API-producing country, and has the highest output and capacity of fermentation-type drugs in the world, according to market intelligence form CCM. API production generates large amounts of the three waste types waste gas, wastewater, and industrial waste, and therefore causes serious pollution.


Rising competition from the USA

The vitamin B12 market has been growing at a significant rate in the ending year. As a result of the prosperous outlook, the market is also expecting huge investments in R&D from the government of the USA as well as from private firms over the coming years. This could create some serious competition for the market share of Hebei Yuxing.


The application scope of vitamin B12

The applications of vitamin B12 range from pharmaceuticals, food and beverages, over animal feed, to cosmetics. The available forms of vitamin B12 are multivitamins, B complex vitamins, and individual supplements.


Vitamin B12 is the last discovered and structurally most complicated vitamin in the B-complex. It is an essential water-soluble bright red vitamin, where 80% of its amount in the human body is stored in the liver alone.


Vitamin B12 is bound to protein in food, and it needs acid conditions to be released. Stomach acid is exactly what plays the key role in vitamin B12 release. Later its bounds to the intrinsic factor in the human body, which ensures its absorption by the body in the small intestine. Unlike other vitamins, this one is not quickly eliminated from the body. Instead, it is stored by the liver for quite a long period of time. Therefore, it can take several years till its deficiency becomes vivid.


About CCM

CCM is the leading market intelligence provider for China’s agriculture, chemicals, and food and feed markets


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