Amino Acids China E-News(Amino Acids China E-News 202212)

Welcome to the December issue of Amino Acids China E-News.

With regard to price, the ex-works price of threonine tumbled in Dec. due to the low price of raw materials and oversupply in market.

With regard to project progress:

• In Dec., Zhenyuan Biotech was seeking tenders for building its "directed biosynthesis Shangyu industrialisation base project" (Phase I).
• The EI report of Bayannur Huaheng's "210,000 t/a functional sugars and 4,000 t/a refined amino acids project" was publicised by the local environmental authority on 1 Dec.
• The major devices of the production lines in Phase I (mainly producing corn starch, corn oil, etc.) of Henan Jinyufeng's big health industrial park project have been installed and are undergoing commissioning.
• On 8 Dec., the EI report of Hulun Buir Northeast Fufeng's "500,000 t/a amino acid and its ancillary facilities project" was approved by the local environmental authority. This project mainly involves building a 300,000 t/a monosodium glutamate production line and a 200,000 t/a lysine production line.

With regards to update on enterprises:

• Star Lake Bioscience has acquired 99.22% of shares in Eppen Biotech and intends to raise matching funds of up to USD210.60 million (RMB1.5 billion) from a non-public issuance of shares to not more than 35 (including 35) qualified specific investors.
• Huaheng Biotech released an announcement saying that it intends to complete the "technical renovation and capacity expansion project of 5,000 t/a alanine via fermentation method" and "alternate production project of 25,000 t/a alanine and valine"; the remaining funds raised for those projects will be used to supplement cash flow in a permanent way.
• Bluestar Adisseo and Zhejiang NHU held explanation meetings of Q3 performance and talked about their methionine businesses.

With regard to import and export, in Oct., China's export volume of lysine was 4.23 tonnes, slumping by 71.72% YoY; that of lysine ester and salt was 73,946.55 tonnes, down 4.26% YoY.

The USD/CNY exchange rate in this newsletter is USD1.00=RMB7.1225 on 1 Dec., 2022, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.