Guangzhou China Oct. 26, 2010 - Corn deep processing industry is to be integrated for its overcapacity in China. It may restrict the development of related industries with high levels of pollution next year. Taking corn starch for example, though gross profit of this industry is relatively high, the operating rate throughout the country is only 65%, which has fully satisfied the market demand.
The government should encourage some big companies to merge small ones to fully make good use of resources, said Wang Licai, vice chairman of China Starch Industry Association. Mr. Wang also disclosed that the government would upraise the requirements on the industry to restrain its blind development. For instance, one of the requirements for corn starch projects viewed by Mr. Wang is that the minimum capacity should be 600,000t/a, which may drive many investors away.
In this situation, most capacity of corn deep processing products will gradually concentrate on several large-scale enterprises in the near future in China. The small-scale enterprises will face intense competition and even be excluded from the industry.
Source: CCM International