On 12 April, 2016, Guangzhou Shuangqiao Co., Ltd. (Guangzhou Shuangqiao)
released its 2015 work summary and 2016 work plan. Accordingly, there were 2
highlights in 2015:
- Enlarged production scale. In July 2015, Guangzhou Shuangqiao successfully
acquired 100% of shares in Hubei Meiweiyuan Biotechnology Co., Ltd.
(Meiweiyuan), in which the production capacity of F55 HFCS (= high fructose corn
syrup) and syrup for beer respectively was given at 100,000 t/a and 50,000 t/a.
Also in July, Shuangqiao (Xiamen) Co., Ltd. (Shuangqiao Xiamen) put its 1st
phase starch sugar project (500,000 t/a in total: 1st phase at 200,000 t/a and
2nd phase at 300,000 t/a) into operation, which enabled Guangzhou Shuangqiao to
have a total production capacity of 750,000 t/a for starch sugar, up by 350,000
t/a YoY. This helped Guangzhou Shuangqiao to overfulfill its sales goal:
800,000 tonnes vs. 780,000 tonnes.
- Enriched product structure. In 2015, Guangzhou Shuangqiao developed new
products including caramel and liquefied corn syrup. Of this, caramel was
launched onto the market in Dec. 2015 and liquefied corn syrup will be produced
and sold soon, as the food production licence has been obtained.
In 2016, Guangzhou Shuangqiao plans to achieve the sales of 1 million tonnes of
starch sugar. Based on the production scale expansion, the company will enhance
the market promotion and increase the sales.
First, the operation of its new plants is on the right track. The plants, one
in Hubei Province (Central Region of China) and the other in Xiamen City
(Southeast China), will facilitate the sales expansion from South China to
Central Region and eastern China.
Second, the production scale will be enlarged continuously. In 2014, Guangzhou
Shuangqiao set up Shuangqiao (Chongqing) Co., Ltd., and launched a 500,000 t/a
starch sugar project there, of which the 1st phase (200,000 t/a) is to be put
into trial operation this year.
However, "We are facing a risk that the sales volume will increase whilst the
profit will decrease,' stated Guangzhou Shuangqiao. CCM believes that this is
mainly impacted by the decreases in starch sugar prices.
According to CCM's
price monitoring, the average quoted price of F55 HFCS by Guangzhou Shuangqiao
was USD426/t (RMB2,750/t) in Q1 2016, down by 16% YoY. "We will optimise the
enterprise management and carry out production technology reform to achieve cost
reduction and economic effect growth,' is a claim by Guangzhou Shuangqiao.
This article comes from Sweeteners China News 1604, CCM
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