Large VB2 producer Guangji Pharmaceutical resumes production after suspension for one month

Publish time: 12th September, 2019      Source: CCM
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  On August 27, Hubei Guangji Pharmaceutical Co.,Ltd. (Guangji Pharmaceutical) announced that its subsidiary, Guangji Pharmaceutical Mengzhou Co.,Ltd. (Guangji Mengzhou), has returned to normal production after an one-month overhaul starting from August 1, 2019. In spite of the fact that all production was suspended during the overhaul, the company still made good sales. Due to an earlier completion of the overhaul, Guangji Mengzhou resumed its production in advance on August 27, 2019. Guangji Pharmaceutical is the largest producer of vitamin B2 across the world, with a VB2 production capacity of 2,500 tonnes per year from Guangji Mengzhou.


  One-month suspension has little impact on Guangji Pharmaceutical's revenue

  According to Guangji Pharmaceutical, the overhaul generally aimed at workshop equipment of its subsidiary, Guangji Mengzhou. The company mainly engages itself in production and sales regarding feed additives with import and export business, especially vitamin B2.


  It was estimated that the related costs taking place during the overhaul accounted for only 3.06% of the company's annual production costs. In other words, the company's annual production costs were not affected to a great extent. Besides, Guangji Pharmaceutical expressed that the suspension would not exert much effect on the company's revenue in 2019.


  Guangji Pharmaceutical mainly produces raw materials, medical preparations, and food and feed additives

  Guangji Pharmaceutical is a significant holding subsidiary belonging to Hubei Changjiang Industrial Investment Group Co., Ltd. As a high-tech listed company in China, Guangji Pharmaceutical mainly produces pharmaceutical raw materials, medical preparations, and food and feed additives. Founded in 1969, the enterprise is now integrated with scientific research and pharmaceutical production.


  Most importantly, Guangji Pharmaceutical becomes a large and powerful production base of riboflavin in China. Its core production technology won the Second Prize for Science & Technology Development in China and the First Prize for Science & Technology Development in Hubei Province. One of the company's products, vitamin B2 for feed additives, was awarded honour of "China Famous Brand" in 2007.


  Globally speaking, the products of Guangji Pharmaceutical are exported from China to more than 80 countries and regions. In terms of the sales volume of riboflavin, Guangji Pharmaceutical is ranked among the leaders in the world.


  Guangji Pharmaceutical, DSM, and BASF exceed 80% of the global vitamin B2 capacity

  Vitamin B2 is one of the 13 essential vitamin elements of human body. It also plays an important role in energy metabolism and material metabolism of organisms.


  Animal feeds and food additives serve as major demands of vitamin B2, representing respectively 64% and 32% in the down-stream part of the demand structure. In contrast, other uses like medicine are in less demand for Vitamin B2, accounting for less than 5%. Internationally speaking, the overall demand for vitamin B2 is around 7,000 tonnes in the market. In China, 2,000 tonnes of vitamin B2 are demanded each year.


  At present, the overall production capacity of vitamin b2 gets to about 10,000 tonnes in the world, among which 4,800 tonnes come from Guangji Pharmaceutical, 2,000 tonnes from DSM, and 1,500 tonnes from BASF. These three enterprises are the leading ones in the vitamin B2 industry, with overall capacity of around 8,300 tonnes, exceeding 80% of the global capacity.


  The main vitamin B2 suppliers in China consist of Guangji Pharmaceutical and Haijianuo Pharmaceutical. The subsidiary of Haijianuo Pharmaceutical, Inner Mongolia Chifeng Pharmaceutical Co., Ltd., can produce 1,000 tonnes of vitamin B2 per year.


  For more information about China's vitamin market, please have a look at our monthly newsletter Vitamins China E-News.