May 23, 2013
CJ Cheiljedang aims to top in global lysine market
By completing its Jombang Plant in Indonesia by 2012, CJ Cheiljedang Corporation aims to be the no. one and no. two in global lysine and threonine markets.
The determination of securing the world''s largest production capacity for lysine by CJ CheilJedang is expected to bring about an upheaval in the global lysine market with the volume of US$2.5 billion. This is very meaningful in the way that the company, which has been recognised as a food maker, will hold the top place in the global lysine market in addition to the no.one position in the global nucleic acid market.
On August 30, CJ CheilJedangheld a ground breaking ceremony for the lysine and threonine plants with the investments of about US$300 million in Jombang, Indonesia. Upon the completion in the first half of 2012, the plants will annually produce 100,000 tonnes of lysine and 50,000 tonnes of threonine, which will help the company to grasp the no.one position with more than 25% share in the global lysine market where GBT of China and Ajinomoto of Japan rank first and second market share, respectively.
Jin-Soo Kim, CEO of CJ CheilJedang said, "Our investments will be continued to secure annual production capacity of 550,000 tonnes of lysine and achieve 30% market share by 2013."
The new Jombang plants will introduce environment-friendly production methods and demonstrate world''s lowest production costs by utilising the infrastructure of existing nucleic acid production facilities. Lysine and threonine produced in these plants will be mainly sold in rapidly growing Chinese market.
Furthermore, CJ CheilJedang aims to challenge Ajinomoto who are accounting for more than 70% of the global tryptophan market with a volume of US$100 million by upgrading production capacity of tryptophan. To this end, CJ CheilJedang has implemented efficient investments in its Pasuruan plants in Indonesia and focused on developing environment-friendly technologies. The production of tryptophan started from the end of this July. The annual production volume will be expanded to 1,500 tonnes in 2011, which will put pressure on Ajinomoto with the annual production volume of 3,500 tonnes.
Jin-Soo Kim, CEO of CJ CheilJedang said, "The launch of tryptophan completed our all-round production system for three amino acids for livestock (lysine, threonine and tryptophan) and the product with high growth potential and value is expected to bring stable profits to our bio business in the future."
Meanwhile, the company is striving to enhance its dominant position in the nucleic acid market where it had surpassed Ajinomoto in 2006. To this end, CJ CheilJedang started the construction of the second nucleic acid plant in Liaocheng, China, early this year, in which KRW38 billion (US$34 million) will be invested. Upon the completion, the production capacity will be added by about 4,000 tonnes and market share will be also extended from current 38% to 43% in 2013. As the production of nucleic acid requires a lot of cutting-edge technologies, it is very technology-intensive business and there are only five makers in the world.