Anhui
Jinhe is enjoying high-profit margins for its sweetener and spices production.
The company is investing in several new production capacities to strengthen its
position as the leading global supplier of acesulfame-K and maltol.
China's
food ingredient and fine chemicals giant Anhui Jinhe has announced recently to
establish a circular economy industrial park. The park will be located in the
salt chemical industrial zone of Chuzhou City in Anhui Province, the company
will invest more than USD340 million in the new business growth opportunity to
enhance its position in the Chinese market.
The
project will be carried out in two phases. Both projects are planned to need
two years in building, which gives the whole business development measurement
of Anhui Jinhe four years to complete, with the estimated finishing time in the
mid of 2022.
After
putting these projects into operation, Anhui Jinhe will be possible to double
its production capacity and consolidate its leading position in the global
acesulfame-K industry and domestic sucralose and maltol industries. Moreover,
it can enter upstream sectors, extend industrial chain and achieve related
vertical integration, and further improve comprehensive competitiveness, which
will boost its development in the fields of food additives, medical
intermediates and biotechnology.
The main products of
Anhui Jinhe
The
company is benefiting significantly from the high prices of sweeteners like
acesulfame-K, maltol, and sucralose, which are main products and very profitable
for Anhui Jinhe. The main competitors for acesulfame-K and maltol in China both
are forced to suspend production currently, which enables to keep the prices
high and benefits Anhui Jinhe's business significantly.
Anhui
Jinhe is the leading producer of Acesulfame-K in the world, owning a market
share of more than 60% in 2016. The manufacturer leads the global supply with a
production capacity capable of 12,000 tonnes per year.
With
a production capacity of 4,000 tonnes per year maltol, Anhui Jinhe is also
leading the global supply of this food ingredient by sharing around 70% of the
market. The company announced that it will further invest in the downstream
industry of maltol, pharmaceuticals intermediates, to expand the business
scope.
Sucralose
is the latest sweetener, added to the product range of Anhui Jinhe in July
2016. After some early difficulties, the company lowered the price and was able
to gain some market share while still making a profit. Hence, Anhui Jinhe wants
to increase the production capacity to get more market share in this sweetener
market.
About the company
Anhui
Jinhe Industrial Co., Ltd, based in Chuzhou, the People's Republic of China, is
mainly engaged in the research, development, and production of fine and basic
chemical products in China. The company's sweetener products include
Acesulfame-K, Maltol, Ethyl Maltol, methyl cyclopentenone as well as sucralose.
The
basic chemical products mainly include liquid Ammonia, Nitric acid, Sulfuric
acid, Formaldehyde, Melamine, Pentaerythritol, Diketene, Neopentyl Glycol, and
pharmaceutical intermediates. In the field of fine chemicals, the company is
the largest producer of Maltol, Ethyl Maltol and Acesulfame-K worldwide.
What's
more, in the end of 2017, Anhui Jinhe has finished the industrial and
commercial registration of a wholly-owned subsidiary called Anhui Jinyi. The
new subsidiary is mainly producing food additives, edible essences, and
chemical intermediates. Anhui Jinhe has developed rapidly in the recent years,
benefitting the market position of its parent company in China for sweeteners
and other food ingredients.
On
the other hand, Anhui Jinhe has sold more than half of its share for its
subsidiary Anhui Huaertai in the middle of 2017. The strategic reason behind
the sales of its subsidiary is the aim to remove away from the basic chemical
business and focus more on the fine chemical business, which provides higher
profit margins for the company.
About the article
The
information for this article comes from CCM, China's leading market
intelligence provider for the fields of agriculture, chemicals, and food &
feed.
To
find more analysis on China's sweetener market, please have a look at CCM's
monthly published Sweeteners Newsletter, with insights into market trends,
company dynamics, policy changes, trade analysis, and any newsworthy story from
China's sweetener market to be ahead of the competition.