Industrial Biotechnology, referring to the application of biotechnology in industrial processes based on renewable resources, is expected to compete with or even replace the existing petroleum-based products or chemical processes.
China's biotechnology development focuses on agriculture, pharmaceutical, energy, chemical and environment. Output value of China's biotechnology industry has developed rapidly with CAGR of 30% since 2005, largely attributed to Chinese government's increasing attention to biotechnology and growing number of biotechnology companies.
Chinese government has initiated several programs, aiming in 2020, China's total biotechnology industry output value will reach USD 3,660 billion, accounting nearly 4% of China's GDP. Although abundant biotic resources and increasing biotechnology talents make it possible for China to achieve its goal, lack of capital, advanced technologies and equipment has become bottlenecks, as most Chinese biotechnology companies are of small-scale and have weak innovation ability.
2. Industrial Biotechnologies China News
Vol.1 Issue 9, Sep. 8, 2009
Industrial Biotechnologies China News 0909
BIO-FUELS ...................................................................... 1 Ready reports related to
Lianhai Biotech to expand butanol with new technology...................... 1 industrial biotechnology:
SFB expands xanthoceras sorbifolia capacity........................................ 2 - Future of White Biotechnology in China
Guizhou launches 10,000t/a biodiesel production line .......................... 4 Edition (2)
- Biofuels Market in China – Edition (1)
BIO-PRODUCTS .............................................................. 6
- Production and Market of Monosodium
Donta Group enlarging yeast production ................................................ 6
Glutamate (MSG) in China Edition (1)
Continent Biotech expanding enzyme preparation ................................ 9
- Future of Red Biotechnology in China
CAS building largest lactase production base in China ...................... 10
- Future of Enzyme in China to 2020
Novozymes expands enzyme production.............................................. 12
- Future of Green Biotechnology in China
Hunan Yuyuan expands in microbial fertilizer ...................................... 14
SK sells SCR enzyme technology to China........................................... 15
BIO-BASED CHEMICALS ............................................. 16 CCM related newsletter:
China’s citric acid export volume up but price down........................... 16 - Corn Products China News
VC export price rises ............................................................................... 18
Jianding Biotechnology established...................................................... 20 Contact us for more information
Baolingbao to develop FOS and dietary fiber ....................................... 22 about CCM.
BIO-MATERIALS ........................................................... 24
Shenzhen Ecomann launches 5,000t/a PHA.......................................... 24
Tiancheng Corn to carry out PLA project.............................................. 25
NEWS IN BRIEF............................................................. 26
China holds 2009 summit forum on microbial fertilizer ....................... 26
Green Energy Group invests in biodiesel.............................................. 26
Laibin Tianren launches160,000t/a biofertilizer plant........................... 26
China to cultivate large-scale energy forests........................................ 27
Ministry of Health approves 26 food additives...................................... 27
Beijing founds biogas technology strategic alliance ........................... 27
Guangzhou establishes biotechnology service alliance ..................... 27
Nanyang Tianrong builds 6,000t/a PPC catalyst ................................... 27
Sichuan Guanghe to build 100,000t/a sweet potatoes ethanol ........... 27
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3. CCM Newsletter Industrial Biotechnologies China News
Headlines of Industrial Biotechnologies China News 0909
■ Lianhai Biotech will expand butanol production Editor’s Word
based on its new technology.
Welcome to September Issue of Industrial Biotechnologies China News
■ Guizhou launched a 10,000t/a bio-diesel
published by CCM International, a professional consulting company who has
production line on Aug. 6th 2009.
been intently focusing on dynamics of China’s industrial biotechnologies industry.
■ Shuangfeng Forestry Bureau is expanding XS
production capacity in Yichun City.
Growing concerns on environmental protection and energy security have
■ Donta Group is to launch its yeast expansion
become key drivers for China’s fast growing industrial biotechnology. Successive
project by the end of Sep. 2009.
supporting policies are clear indicators showing China’s determination to develop
■ Continent Biotech is building a 15,000t/a enzyme
this industry----On June 2nd, 2009, China's State Council announced a policy
preparation plant.
package to accelerate bio-industry development; ---during Aug. 2009, some local
■ Novozymes will construct an enzyme production
governments like Shandong and Shenzhen issued their own plans; ----Also, in
base in Tianjin.
the 11th Five-Year Plan (2006-2010), Chinese government has proclaimed to
■ CAS is building a lactase production base in
promote biodegradable materials.
Jiangxi, aiming to capture China’s huge lactase
market.
Attracted by its huge potential, enterprises both domestic and overseas have
■ Hunan Yuyuan signed a capital increase
displayed strong interests in bio-industry. For example, Shenzhen Ecomann’s
agreement with Shenzhen Fortune Venture in order
investment in PHA and Tiancheng Corn’s in PLA, the two promising materials
to expand.
from renewable resources, covered in this issue are both evidences
■ SK Holding sold SCR enzyme technology to China
demonstrating the trend. Besides, Novozymes’ global strategy on enzymes
Power in late July 2009.
expansion covered indicates a global trend for second-generation bio-ethanol.
■ In the first seven months of 2009, VC export price
has climbed and may keep growing.
Besides, under recovering global economy and growing environmental protection
■ Jianding Biotechnology plans to launch its
awareness worldwide, more players domestic and overseas are expected to
first-phase glucosamine and activated carbon
increase investment in China’s biotechnology sector.
production lines by the end of this year.
■ Baolingbao plans to enter FOS and dietary fiber
Main companies and institutes mentioned in this issue
market through getting listed on Shenzhen Stock
Exchange.
■ China’s citric acid export volume has climbed up
with price fall in the first seven months of 2009.
■ Shenzhen Ecomann launched a 5,000t/a PHA
production line in Shandong.
■ Tiancheng Corn is planning to construct 10,000t/a
PLA with several production lines.
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4. CCM Newsletter Industrial Biotechnologies China News
BIO-FUELS
Lianhai Biotech to expand butanol with new technology
Jiangsu Lianhai Biological Technology from flour deep-processing as raw this expansion project is divided into
Co., Ltd. (Lianhai Biotech) will produce material. three phases (TABLE 1).
butanol on a large scale by adopting
fermentation method using wastewater With total investment of USD400 million,
TABLE 1: Information of the project
Item Investment (USD) Capacity (t/a) Launch time
First phase 60 million 35,000 Sep. 2008
Second phase N/A 100,000 Oct. 2009
Third phase N/A 200,000 Mar. 2011
Source: CCM International
The core technology adopted in this industry domestic market.
expansion project uses the patented To achieve energy conservation
strain technology from Shanghai and consumption reduction; At present, there are eight domestic
Institute for Biological Science (SIBS) of To achieve recycling and clean enterprises producing butanol by
Chinese Academy of Sciences (CAS), production; fermentation, among which Jilin Ji’an
and is jointly developed b y Lianhai To promote Lianhai Biotech to be Biochemical Co., Ltd. (Jilin Ji’an) is the
Biotech and Jiangnan University. the largest butanol producer at biggest one with the capacity of
According to CAS and experts from home. 50,000t/a, and another three, namely
China's fermentation industry, the Jiangsu Jinmaoyuan Biochemical Co.,
technology has reached international The project has been declared as a Ltd. (Jiangsu Jinmaoyuan), Guangxi
advanced level. major provincial project of transferring Guiping Jinyuan Alcohol Co., Ltd.
scientific & technological achievements. (Guiping Jinyuan) and Jilin Cathay
By adopting this new technology, this And in early Aug., it has passed the Industrial Biotechnology Co., Ltd. (Jilin
project will make the following major online assessment by the experts from Cathay) (FIGURE1), has capacity of
breakthroughs: Provincial Science and Technology 30,000t/a for each.
To achieve recovery of wastewater Department. Upon completion, butanol
from flour deep-processing supply will become relatively sufficient in
1
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5. CCM Newsletter Industrial Biotechnologies China News
FIGURE 1:Capacity of domestic butanol enterprises in 2008
60,000
50,000
50,000
40,000
(Unit: t/a)
30,000 30,000 30,000
30,000
20,000
10,000 5,000 5,000 5,000 5,000
0
Jilin Ji'an Jiangsu Guiping Jilin Cathay Jilin Zhonghai Heilongjiang Tangshan Tongliao
Jinmaoyuan Jinyuan Haocheng Jidong Zhongke
Tianyuan
Source: CCM International
Note: Jilin Zhongha: Jilin Zhonghai Chemical Co., Ltd.
Heilongjiang Haocheng: Heilongjiang Haocheng Chemical Co., Ltd.
Tangshan Jidong: Tangshan Jidong Solvent Co., Ltd.
Tongliao Zhongke Tianyuan: Tongliao Zhongke Tianyuan Starch Chemical Co., Ltd.
Domestic butanol supply has been enterprises plan to expand their producers. However, butanol application
falling short of demand, with the output production capacity. And annual is expected to become an irreversible
50% less than the consumption. From increased capacity of the butanol trend, given the potential pressing
2000 to 2006, domestic butanol projects will reach 730,000 tonnes. situation of oil resources depletion and
consumption had increased year by Through continuous project expansion, the expected price rise of oil, so butanol
year, and in 2006, the consumption China will be able to reverse the fermentation industry is sure to become
reached 7,400,000 tonnes at home. dependence on imports. promising.
Meanwhile, the butanol prices have
risen from about USD1,318/t in Jan. in Although crude oil prices has dropped to
2006 to USD2,342/t at present. below USD50/barrel caused by financial
crisis since H2 2008, which had led to
Currently, some domestic butanol production suspension of many butanol
SFB expands xanthoceras sorbifolia capacity
Shuangfeng Forestry Bureau (SFB, biggest bio-energy production base in initiated since 2008, which is expected
located in Yichun City, Heilongjiang Heilongjiang upon completion. to be launched by the end of 2010. The
Province) is building a xanthoceras second phase with 266 hectares XS is
sorbifolia (XS) base in Yichun City, This XS base construction is divided being built at present and will be
which is expected to become the into two phases. The first-phase launched by the end of 2012. In fact,
construction with 133 hectares XS has SFB has planned to expand its XS
2
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6. CCM Newsletter Industrial Biotechnologies China News
capacity to 1,000 hectares in the next XS (PICTURE) is an ideal raw material no environmental pollution parameter
five years. for biodiesel and bioethanol production like sulfur and nitrogen, etc, which
with its high oil content, with seed oil conforms to the quality indexes of
Insider reveals that after the launch of content of about 30%-36% and kernel biodiesel. Since 2005, China has
this XS base, it will supply XS for China oil content of 50%-70%. Besides, it has successfully developed the technology
Nature Petroleum Company (CNPC) as high output of about 1,500-2,000kg/h. to produce biodiesel with XS as raw
the raw material for biodiesel or Moreover, it is said that biodiesel material.
bioethanol production. produced from XS has about 93.4%
hydrocarbons with 18 carbons and has
PICTURE: Cross-section of XS
Source: www.Yxsfz.cn
At present, there are about 5,300 for carbon content in biodiesel. Those However, raw material cost is too much
hectares XS in China, mainly distributed biodiesel producers using waste animal for producers using high oil content
in four provinces – Shanxi, Inner oil and vegetable oil as raw material plant to produce biodiesel (TABLE 2),
Mongolia, Liaoning and Shaanxi. And were seriously affected by this standard which is a bottleneck for their
some other provinces like Gansu are and some even went bankrupt. The development. For example, Sichuan
also trying to cultivate this plant, and quality of biodiesel produced from waste Gushan Oil Chemical Co. Ltd. (Sichuan
Chinese Academy of Forestry has animal oil and vegetable oil varies a lot, Gushan) produces biodiesel by using
provided great support to these areas which can do harm to machines. soybean or colza with capacity of
by popularizing the XS planting 240,000t/a, and the cost on raw material
technology, aiming to provide ample raw This standard has driven biodiesel has seen continuous increase, thus
material for biodiesel production in the producers to actively search for some hindering the development of biodiesel,
future. Currently, most of XS are used in high oil content plants as raw materials. according to Mr. Zhao, president of
edible oil, medicine, etc, in China. Guizhou, for instance, had launched a Sichuan Gushan.
10,000t/a biodiesel production line with
Chinese government enacted a jatropha as raw material this month.
‘National standards for biodiesel ‘in
2008, which requires a higher demand
3
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7. CCM Newsletter Industrial Biotechnologies China News
TABLE 2: Main biodiesel producers in China and their raw materials
Company Raw material
Sichuan Gushan Soybean or colza.
Liuzhou Minghui Biofuels Co., Ltd. Jatropha, tung, tea plant
Longyan Zhuoyue New Energy Development Co. Ltd Waste animal oil and vegetable oil
Source: CCM International
XS can be planted in a barren land, production capacity has reached
which is easy for mass production. As As estimated, the demand for biodiesel 3,000,000 tonnes in 2008, while actual
non-staple food, XS price is expected in China will increase a lot in the near output was only 300,000 tonnes,
be less influenced by price fluctuation of future due to global energy shortage. indicating a huge development
other products like agricultural products, The prices of petroleum products have potential.
industrial products, etc, which will increased for 24 times in 2009, driving
contribute to development of XS-based the government to make more efforts to
biodiesel. seek new energies. Besides, biodiesel
Guizhou launches 10,000t/a biodiesel production line
Guizhou has launched the first-phase Academy of Sciences, and all indexes biodiesel project takes Jatropha as raw
10,000t/a biodiesel production line in of the samples have reached the material and is divided into three phases.
New Material Industrial Park (Guiyang National Biodiesel BD100 standards. Upon completion of the three phases
th
City, Guizhou Province) on Aug. 6 (TABLE 3), the total capacity will reach
2009. Invested by the No.061 Base of China 160,000t/a.
Aerospace Science & Industry
Currently, the first biodiesel samples of Corporation (located in Guizhou), a
this project have been sent for test by large scientific research and production
Guangzhou Energy Institute of Chinese center for aerospace products, this
TABLE 3: Information of the biodiesel project
Phase Investment (USD) Planned capacity (t/a) Launch time
First phase 4,390,000 10,000 2009
Second phase 7,320,000 50,000 2010
Third phase N/A 100,000 2012
Source: CCM International
The successful launch of Guizhou’s Jatropha resources in Bouyei-Miao What’s more, there are many barren
10,000t/a biodiesel line is based on the Autonomous Prefecture of Qianxinan in mountains suitable for Jatropha
following advantages. southwest Guizhou, as well as the cultivation, and through scientific
valleys of Nanpan River, Beipan River, cultivation, the average per- hectare
First of all, Guizhou is rich in biological Red River and Duliu River. yield of fruit can reach 4,500 kilograms,
resources. There are abundant wild which can produce about 100 to 200
4
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8. CCM Newsletter Industrial Biotechnologies China News
kilograms biodiesel. Using Jatropha as Guizhou and diesel is greatly needed in to invest in Jatropha production base in
the main raw material for biodiesel mining operation. Yunnan, and China National Offshore
production can not only reduce Oil Corporation (CNOOC) will invest in
production cost, but also increase the At present, some domestic and foreign Hainan and Sichuan, and British
local peasants’ income and prevent land energy companies also concern about Sunshine Technology Group, a
desertification. the potential development of Jatropha in commercial forestry plantation company,
China, and have invested in Jatropha cooperates with the Honghe Prefecture
Besides, local market prospect of cultivation. For example, PetroChina Forestry Bureau of Yunnan Province to
biodiesel is expected to be bright, as Limited (Petrol China), the biggest jointly develop Jatropha base.
there are many mining companies in controlled subsidiary of China National
Petroleum Corporation(CNPC), plans
PICTURE: Distribution of Jatropha bases
Main Jatropha planting regions
Minor Jatropha planting regions
Source: CCM International
At present, there are dozens of biodiesel capacity has reached demand is estimated to reach
biodiesel enterprises including private, 3,000,000t/a in 2008, the actual annual 20,000,000 tonnes by 2010 in China. In
join stock and state-owned enterprises. output is only 300,000 tonnes, indicating view of the huge gap between the
Hebei Zhenghe Co., Ltd., Sichuan a huge development potential. supply and the demand, related
Gushan Group Co., Ltd. and Fujian enterprises are expected to seize the
Zhuoyue Co., Ltd. are relatively larger By 2010, China’s annual biodiesel market opportunity and speed up the
enterprises with annual output of above output will reach 1,000,000 tonnes, and biodiesel investment (FIGURE 2).
10,000 tonnes. Although China’s 9,000,000 tonnes by 2020. And the
5
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9. CCM Newsletter Industrial Biotechnologies China News
FIGURE 2: Capacity of major biodiesel producers in 2008
250,000
240,000
200,000
150,000
100,000
(Unit: t/a)
100,000
50,000 50,000
50,000
30,000
12,000 10,000 10,000 6,000
0
Sichuan Liuzhou Longyan Xiamen Hebei Heibei Jiangsu Guizhou Shanxi
Gushan Minghui Zhuoyue Zhuoyue Zhenghe Fukuan Keyuan Jiangnan Huashuo
Hangtian
Source: CCM International
As an emerging industry in China, to promote its development. National Taxation Supporting Policy for
biodiesel is characterized by both great People's Congress has implemented Bioenergy and Biochemical Industry’
development potential and various the ‘Renewable Energy Law’ since 2006, and so on. These policies are expected
restrictions in the early stage. Chinese and the Ministry of Finance, National to provide a strong support for domestic
government has attached great Development and Reform Commission biodiesel development.
importance to the development of and other departments jointly issued
biofuels and released relevant policies ‘Advices on Implementing Fiscal and
BIO-PRODUCTS
Donta Group enlarging yeast production
Dongguan Donta Group Co., Ltd. Biochemical Science & Technology Co., yeast producer), with investment of
(Donta Group, headquartered in Ltd. (Guangxi Yipinxian) in Laibin City, USD102 million.
Dongguan City, Guangdong Province) is Guangxi Province for its yeast capacity
expanding yeast production and is expansion. Donta Group’s yeast expansion project
expected to launch its 48,000t/a dried is based on the following advantages.
yeast and 10,000t/a yeast extract Actually, these two subsidiaries were
facilities by the end of Sep. 2009. jointly invested by Donta Group, Firstly, this project can take the
Guangxi Laibin Donta group Co., Ltd. advantage of adequate raw material
Early in May 2006, Donta Group had (Laibin, a local subsidiary of Donta supply in local areas. As the biggest
established two subsidiaries, Guangxi Group, established in 2003) and sugar cane production region in China,
Danbaoli Yeast Co., Ltd. (Guangxi Lesaffre Group (the world’s biggest Guangxi has taken up more than 70% of
Danbaoli) and Guangxi Yipinxian China’s total sugar cane output these
6
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10. CCM Newsletter Industrial Biotechnologies China News
years. And Laibin took up 18% of which has strong sales network
Guangxi’s total with 8.3 million tonnes in throughout China and extensively With fast growth of some local
2008. Besides, Donta Group has 7 exports its products to Southeast Asia, companies, China’s yeast market has
sugar processing bases supplying Middle East, South America, Africa, etc., seen intense competitions in recent
treacle as common raw materials of which will provide mature sales years, thus Lesaffre Group prefer to
yeast for the new project. Besides, local networks for these two new companies. seek some cooperators to enlarge its
government has been paying much market share in China. As the biggest
attention to developing yeast industry by In addition, there are few yeast yeast producer in the world, Lesaffre
releasing tax preferential policies for producers in Guangxi, but the Group launched a yeast production
yeast companies. consumption volume is estimated at base with capacity of 3,000t/a in Anhui
50,000 tonnes per year, indicating a big Province of China in 1999, and then it
Secondly, this project is equipped with market opportunity. built a sales company in Shanghai in
advanced production technology and 2002.
equipments sourced from Lesaffre This cooperation can achieve a win-win
Group, who has been producing yeast situation. Donta Group wants to bring in In 2008, China’s total yeast production
for 150 years. With the strong technical new advanced technology for deeper capacity reached 190,000t/a,
support from Lesaffre Group, the new development in yeast field, and Lesaffre accounting for nearly 20% of the world’s
facilities are expected to make the best Group intends to expand its market total capacity, and the actual total output
use of the advanced equipments. share in China and cut down the reached 100,000 tonnes. It is expected
production cost with local rich raw that, as some producers are expanding
Besides, Donta Group has a subsidiary material supply and large sales network production, the total yeast capacity will
named as Guangdong Danbaoli Group of Donta Group, according to Mr. Guo, reach 210,000t/a in 2009 (FIGURE 3).
Co., Ltd. (Guangdong Danbaoli) with technical engineer of Guangdong
current dried yeast capacity of 16,000t/a, Danbaoli.
FIGURE 3: China’s total yeast capacity, 2005 ~ 2009est.
250,000
210,000
200,000 190,000
170,000
150,000
150,000
(Unit: t/a)
120,000
100,000
50,000
0
2005 2006 2007 2008 2009est.
Source: CCM International
7
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11. CCM Newsletter Industrial Biotechnologies China News
Besides, yeast industry is becoming accounting for over 70% of China total put great efforts to expand their
more and more concentrated in China capacity. In recent years, the top 2 have capacity.
with the top 3 players (TABLE 4)
TABLE 4: Major yeast producers in China, 2009
Manufacturer Location Capacity ’08
Hubei Angel Yeast Co., Ltd. Xinjiang, Shandong, Inner Mongolia, Henan, Guangxi and Hubei 91,000
Mauri Yeast Heilongjiang, Hebei, Shandong, Guangdong, Xinjiang 30,000
Guangdong Danbaoli Yeast Co., Ltd. Guangdong 16,000
Guangdong Zhuhai Aoli Yeast Co., Ltd. Guangdong 2,000
Anhui Lesaffre (Mingguang) Anhui 3,000
Shandong Yantai Hongde Food Industry Co., Ltd. Shandong 2,000
Guangdong Jiangmen Center for Biotech. Co., Ltd. Guangdong 4,000
Shandong Xiwang Leavening Co., Ltd. Shandong 1,500
Qiqiha’er Longtai Food Co., Ltd. Heilongjiang 1,500
Source: CCM International
PICTURE: Distribution of major yeast production regions in China
Source: CCM International
In addition, in recent years, China’s like feedstuff and flour products, etc. As except sour dough do not apply active
demand for yeast and yeast extract has estimated, the major potential market dry yeasts, showing a huge market
been increasing year by year attributed for yeast in China is rural areas, where potential.
to the development of related industries about 90% of homemade flour products
8
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Donta Group is a state-owned companies located in 4 provinces -
enterprise established in 1935, and has Guangdong, Guangxi, Shanxi, Yunnan,
a raw sugar processing base with Donta Group is mainly engaged in four
processing capacity of 700,000t/a, series of products, namely sugar,
which provides part of molasses for biological engineering, thermal-electric
Guangdong Danbaoli. As a power and paper-making.
conglomerate with 21 factories and
Continent Biotech expanding enzyme preparation
Continent Biotech Group Co., Ltd. industrial enzyme etc. But feed has spread throughout China, even to
(Continent Biotech, headquartered in enzymes like phytase, alkaline pectase, some other countries in Asia like Japan,
Qingdao City, Shandong Province) is liquid complex enzyme and alkaline Philippines, etc. , and its sales value
now constructing a 7,000t/a solid xylanase will remain the company’s key reached about USD44 million.
enzyme preparation production line, the products.
second phase of its 15,000t/a enzyme Continent Biotech has been paying
preparation plant, in Weifang City, Actually, Continent Biotech is the first great attention to after-sales service for
Shandong Province. enzyme producer at home to clients both at home and abroad. It built
industrialize liquid enzyme spraying a biotech research institute in Shandong
Continent Biotech’s 15,000t/a enzyme uniformity technology which is in 2005, for the sake of developing
preparation plant consists of the developed independently in 2001. By market-target and high-quality feed
first-phase 8,000t/a for liquid enzyme applying this technology in its enzyme enzyme and supply technology support
preparation, which was completed on preparation production, reaction for various clients in clients.
Jul. 20th 2009 with investment of temperature can keep below 60℃ thus
USD12 million, and the second-phase maintaining high enzyme activity, as in In 2008, there were over one hundred
7,000t/a for solid enzyme preparation normal reaction temperature would feed enzyme producers in China with
with investment of USD22 million. Upon surpass 60℃ with enzyme activity relatively small production capacity and
completion of this plant, Continent losing largely. low-quality products, except
Biotech will expand its total enzyme Novozymes (China) Biotechnology Co.,
preparation capacity to 20,000t/a, and is Besides, with this technology, Continent Ltd, the largest enzyme producer in the
expected to become the largest enzyme Biotech has built another two liquid feed world. Owing to lack of strong market
preparation producer in Shandong. enzyme production bases respectively competitiveness, in terms of technology
in Binzhou City with 3,000t/a complex and capitals, many domestic
Early in Aug. 2008, Continent Biotech enzyme and Linyi City with 1,000t/a small-scale feed enzyme producers
has begun to construct this 15,000t/a phytase and 1,000t/a xylanase in recent choose to stop or suspend expansion,
enzyme preparation plant in Weifang. At years. except Continent Biotech and
present, the company has constructed Guangdong VTR Bio-tech Co., Ltd.,
one major workshop with 240 m3 According to Mr. Duan, technical both of which continue capacity
fermentation capacity, one distilling engineer of Continent Biotech, enzyme expansion. The latter in July launched a
workshop and two power workshops. In products produced by this technology 20,000t/a feed enzyme base in Inner
this plant, Continent Biotech will have been accepted by users because Mongolia.
produce various enzyme preparations of its high quality and short supply. In
like feed enzyme, edible enzyme and 2008, Continent Biotech’s sales network
9
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13. CCM Newsletter Industrial Biotechnologies China News
The demand for feed enzyme will realize that feed enzyme can greatly production cost. Given this trend, feed
continue to rise in the future in China, as enhance utilization rate of nutrition in enzyme is expected to be widely used in
more and more feedstuff producers feed, which can efficiently decrease animal feedstuff. Moreover, increasing
feedstuff output in China year on year is
another key driver for increasing use of
feed enzyme preparation (FIGURE 4).
FIGURE 4: Feedstuff output in China, 2005~2009
160
140
(Unit: million tonnes)
120
100
80
60
40
20
0
2005 2006 2007 2008 2009 est
Source: CCM International
Meanwhile, increasing numbers of feed enterprises. Actually, feed enzyme enzyme, probiotics, protein, bio-fertilizer,
enterprises expect to cooperate with producers should develop new allicin and so forth. The company is
feed enzyme producers, based on technology to improve the quality of equipped with the most advanced liquid
high-quality feed enzyme and good products, thus increasing and solid-state fermentation facilities in
after-sales service. In this situation, feed competitiveness in the future. the world and ascends into the leading
enzyme producers taking advantage of large-scale biological preparation and
high-quality products and good Established in 2001, Continent Biotech manufacturing enterprises.
after-sales performance can resolve is composed of six manufacturing
various production difficulties for feed enterprises and mainly engaged in
CAS building largest lactase production base in China
Chinese Academy of Science (CAS) Jiangxi Province, aiming to capture stages, consisting of seven production
established a subsidiary Chinese China’s huge lactase market. lines. Upon completion, CASL will
Academy of Science Lactase Co., Ltd. achieve 3,000t/a lactase capacity
th
(CASL) on Aug.18 , 2009, and started With total investment of USD19.02 (TABLE 5).
to construct China’s biggest lactase million, the construction of this
production base in Dean County, production base is divided into two
TABLE 5: Information of CASL’s new project
Item First phase Second phase
10
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Capacity 1,500t/a 1,500t/a
Investment USD11.7 million USD7.32 million
Start time Aug. 2009 Oct. 2010
Launch time 2010 2011
Source: CCM International
Lactase, also named as lactase, which can rapidly and efficiently and inefficient technology, thus leading
beta-galactosidase (β-galactosidase), hydrolyze lactose to glucose and to small profit, given the adverse
normally exists in human body in galactose with 6,000u/g, compared with situation of economic downturn at that
intestinal epithelial cells, thereby 3,000u/g or 5,000u/g for existing time. Owing to domestic insufficient
contributing to digestion of lactose products. supply but huge demand, 98% of
present in dairy foods. However, large China’s lactase is imported from other
numbers of people in Asia and Africa, At present, China has few lactase countries like US and Japan, etc., as
accounting for 70% of Asia and Africa’s producers, and most of them have small estimated.
total as estimated, have a genetic capacity. As reported, the total lactase
deficiency of this enzyme and are production capacity in China was only Thanks to increasing demand for low
unable to digest lactose. 20t/a in 2008. For example, Harbin lactose milk products, the demand for
Meihua Biotechnology Co., Ltd. (Meihua lactase in China has been increasing in
The new base will adopt the technology Biotechnology), the only active producer recent years. It was estimated that
of using thalli Mutated Aspergillus Niger in China currently, has lactase capacity Chinese demand for lactase was about
to produce lactase developed by CAS in of only 8t/a. 2,700 tonnes in 2008, most of which
2006, which can enhance lactose was imported from overseas at price of
hydrolysis efficiency and cut down the According to Mr. Zhang, salesman of about USD59,000/t, higher than that of
production cost compared to using the Meihua Biotechnology, some USD43,000/t in domestic market
other thalli under the same condition. companies stopped lactase production (FIGURE 5).
Besides, it will mainly produce a new in 2008 due to its high production cost
FIGURE 5: Output of lactose milk products and demand for lactase in China, 2005~2008
3,500,000 3,000
2700 3,000,000
3,000,000 2300 2,500
2,500,000 2000 2,500,000
1800 2,000
Unit: tonne
2,000,000
2,000,000 1,850,000
1,500
1,500,000
1,000
1,000,000
500,000 500
0 0
2005 2006 2007 2008
Lactose milk products Lactase
Source: CCM International
11
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15. CCM Newsletter Industrial Biotechnologies China News
For the sake of better lactose absorption Yang, Deputy Secretary General of 92%, implying promising market for low
when consuming dairy products, many Chinese Nutrition Society, the lactose milk, as well as a huge demand
countries add lactase to dairy foods or proportion of Chinese adults suffering for lactase to decompose lactose for
other dairy meals. According to Ms. from lactose intolerance is as high as reasonable nutrition absorption.
Novozymes expands enzyme production
Novozymes, the world’s biggest Area and expects to launch it by 2010. After the launch of this new base, with
industrial enzymes producer, Through this expansion, Tianjin total investment of about USD53 million
announced on Aug. 3rd 2009 that it will Novozymes will become Novozymes’ and coverage area of 5,599m2,
construct an enzyme preparation third global enzyme production base. Novozymes is predicted to double its
production base in Tianjin enzyme preparation capacity in China
Economic-Technological Development (FIGURE 6).
FIGURE 6: Main enzyme producers’ market share in the world
22%
47%
6%
21%
4%
Novozymes BASF Danisco DSM Others
Source: Novozymes’ annual report, 2007
According to Mr. Ren, senior manager agro-forestry wastes as a large fields since 1998 (FIGURE 7). And after
from Asia Bioenergy Department of agricultural country. Also, Novozymes nearly 10 years’ research and
Novozymes, the company is very predicts that the second generation development, it has solved some major
optimistic about China’s future bioethanol consumption will explosively technical obstacles in
development of the second generation grow in 2012. second-generation bioethanol
bioethanol, namely using crop wastes production process, and is expected to
as raw materials, as China highly Novozymes has been producing various produce second bioethanol enzymes on
concerns about energy supply and enzymes that are widely used in food, a large scale in 2010.
security and has abundant supply of brewing, washing and other industrial
FIGURE 7: Novozymes enzyme annual sales, 2004~2008
12
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16. CCM Newsletter Industrial Biotechnologies China News
1,600
1,200
(Unit: million USD)
800
400
0
2004 2005 2006 2007 2008
Source: CCM International
Enzymes production cost is an crop wastes to produce fuel ethanol on more and more attention to
important factor influencing the a large scale. second-generation bioethanol. On July
development of second-generation 9th 2009, the enzyme preparation
bioethanol production. At present, The second-generation bioethanol has branch of China Fermentation Industry
enzyme preparation cost accounts for a long value chain, including raw Association held a discussion in
35% of total production cost for material collection, transport and Qingdao. Over twenty domestic large
second-generation bioethanol storage, as well as cellulosic ethanol biotechnology enterprises and research
production, and after large-scale production, sales and so on, among institutes attended the meeting
industrialization, the cost proportion will which the cellulose technology can (FIGURE 8). The branch president
be reduced to 20-25%. According to reduce production cost largely. And the announced the development plan of the
Novozymes’ estimation, the breakthrough of this technology needs enzyme preparation industry. Although
second-generation bioethanol multilateral collaboration to achieve a domestic biotechnology enterprises
production cost in China will be mutual development. Novozymes and have made rapid progress in recent
USD2.59 per gallon in 2010, and can be COFCO in early 2009 reached a new years, their enzyme annual output is still
reduced to USD1.5 per gallon by 2015, cooperation agreement with Sinopec to much less than multinational
which will be very competitive compared initiate large-scale commercial enterprises’.
with gasoline price (USD2 per gallon). production by using crop wastes as raw
materials to produce second-generation
According to Mr. Steen Riisgaard, CEO bioethanol.
of Novozymes, there is only one step
away for the company to make use of Chinese government has been paying
FIGURE 8: Major enzyme producers’ capacity in 2008
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17. CCM Newsletter Industrial Biotechnologies China News
10,000
8,000
8,000
6,500
6,000
6,000
(Unit: t/a)
4,000
4,000
2,000
0
Hunan Jinshi Zhengzhou Jiangyin Henan Yangshao
Fuyuan Baishenglong
Source: CCM International
Note: Hunan Jinshi Group Co., Ltd.
Zhengzhou Fuyuan Biotechnology Co., Ltd.
Jiangyin Baishenglong Bioengineering Co., Ltd.
Henan Yangshao living to turn the engineering Co., Ltd.
Hunan Yuyuan expands in microbial fertilizer
Hunan Yuyuan Bio-technological Co., microbial fertilizer has advantages in
Ltd. (Hunan Yuyuan, located in Hunan Hunan Yuyuan’s expansion of microbial ecological protection, crop quality
national bio-industry base Changsha fertilizer is attributed to at least four improvement and fertilizer efficiency
City, Hunan Province), a leading reasons. enhancement, as microbial fertilizer can
enterprise of microbial fertilizer industry, increase beneficial bacteria in soil to
signed an agreement with Shenzhen Firstly, Chinese government has help crops use nutrients. According to
Fortune Venture Capital Co., Ltd. formulated some policies to promote the Fertilizer Testing Center of Ministry of
(Shenzhen Fortune Venture) to obtain extensive use of microbial fertilizer. For Agriculture, farm products output can
capital for capacity expansion and R&D example, the first document release by increase 12% ~20% by using microbial
st
strengthening on Aug. 21 2009. Chinese government this year stipulate fertilizer. So in vegetable growing
to strengthen the protection and regions like Shouguang, farms use
Actually, after establishment, Hunan improvement of soil, and to promote and microbial fertilizer more and more
Yuyuan had invested about USD15 the use of microbial fertilizer in the widely.
million to build a 10,000 t/a.microbial whole country.
fertilizer production line. This production Furthermore, the average utilization rate
line has the largest investment and Secondly, some farmers have begun to of common fertilizer is only 20%~30%,
largest production capacity, and its accept and use microbial fertilizer, while that of microbial fertilizer is more
technical level and equipment are the which has brought tremendous higher , for example, the nitrogen fixed
most advanced in China. And currently, opportunities for microbial fertilizer in rhizobia can almost all be absorbed
it has putt high concentrations of manufacturers. by plants.
bacteria powder into commercial mass
production. Compared with common fertilizer, More and more farmers realize
14
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18. CCM Newsletter Industrial Biotechnologies China News
important role of microbial fertilizer in
practical production, so microbial Fourthly, microbial fertilizer has a large Currently, there are more 500 microbial
fertilizers have become more and more profit margin, compared with common fertilizer companies in China (TABLE 6),
popular than common fertilizers with fertilizer. And currently, only a few have annual output is about 5 million tonnes,
farmers. been engaged in microbial fertilizer and the application areas are nearly 6
production, and thus they have huge million hectares. Microbial fertilizer
Thirdly, the current status of the soil development potential to capture market product categories continue to increase,
gives business opportunities to share amid this less intense market so far, the products registered in the
microbial fertilizer manufacturers. The competition. The large formal Ministry of Agriculture are divided into
soil compaction and salinization have manufacturers, in particular, like Hunan two major categories of antimicrobial
become widespread, as farmers have Yuyuan, are expected to work hard and and microbial fertilizer including 11
been using nitrogen fertilizer for a long make great progress on this field, varieties. In the next five years, China's
time. Compared with common fertilizer, depending on their sufficient funds and microbial fertilizer annual output is
microbial fertilizer not only can break strong scientific and technological expected to reach 8 million ~ 10 million
potassium and phosphate and fix background. As for other small tones. And it is expected that microbial
nitrogen, but also can greatly increase companies, like family workshops, they fertilizer industries will play a more
fertilizer utilization rate, so it is are running on a small scale and weak important role in agricultural production.
increasingly favored by farmers. in competitiveness.
TABLE 6: Some domestic microbial fertilizer companies in 2008
Company Capacity (t/a) in Location
Hebei Fuhua Kangtute Environmental Co., Ltd. 100,000 Shijiazhuang, Hebei
Hebei Juwei Biological Engineering Co., Ltd. 100,000 Baoding, Hebei
Dezhou Sunshine Biotechnology Co., Ltd. 100,000 Dezhou, Shandong
Dalian Shibeide Biotechnology Co., Ltd. 100,000 Dalian, Liaoning
Shenyang Shennongren Biochemical Engineering Co., Ltd. 30,000 Shenyang, Liaoning
Liaoning Yuanheng Biotechnology Co., Ltd. 30,000 Chaoyang, Liaoning
Beijing Wlong Technology Co., Ltd. 30,000 Beijing, Beijing
Heilongjiang Suihua Nongken Chenhuan Biology Science & Technology Co., Ltd. 20,000 Suihua, Heilongjiang
Shanxi Yi’an Biological Engineering Co., Ltd. 5,000 Yuncheng, Shanxi
Beijing First Biological Engineering Co., Ltd. 5,000 Beijing
Source: CCM International
Although, due to the financial crisis in economy see rapid development and will increase the demand for microbial
2008, market demand for microbial increase in per capita income, Chinese fertilizer. Meanwhile, the new industry
fertilizer production has experienced government will increase the system will also prompt domestic
weak growth. In the long run, with the investments in microbial fertilizer, which microbial fertilizer industry to reshuffle.
SK sells SCR enzyme technology to China
SK Holding Co., Ltd. (SK Holding, (SCR) enzyme technology to Qingdao Company (China Power) in late July
headquartered in Seoul, South Korea) Huatuo Technology Co., Ltd., a 2009, which will enable China Power to
sold its Selective Catalytic Reduction subsidiary of China Power Investment be the first Chinese company to apply
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19. CCM Newsletter Industrial Biotechnologies China News
enzyme technology into industrial power plants and chemical plants and and sulphur dioxide, etc, SCR enzyme
exhaust emissions treatment at home. enhance its application in China in the technology has higher catalysis
near future. efficiency and lower temperature, and
SCR enzyme technology can be used to can reclaim more kinds of exhaust
clean up the exhaust emissions like Based on varieties of Bacillus, SCR emissions, even solid waste.
carbon dioxide, sulfur dioxide, carbon enzyme technology uses enzyme as
monoxide, etc. Researched by SK catalysts, which enjoys higher At present, there are several kinds of
Holding since 1996, this technology has purification efficiency, simpler operation exhaust emissions treatment
been successfully used in South and lower cost compared with the other technologies in China, (TABLE 7), such
Korea’s power plants after 2003, exhaust emission treatment as carbon dioxide reclaiming technology,
accounting for 20% of the country’s total technologies in China, thus it’s expected which has played a growingly important
market share currently. Besides, SK to be applied in a variety of recycling role in recent years due to the
Holding signed a cooperation and waste treatment enterprises. greenhouse effect caused by rising
agreement with Germany-based EnBW carbon dioxide emission. But it can only
Group in July 2007 and began to For instance, compared with SCR treat one or two kinds of waste gases,
explore the overseas markets. chemistry catalysts technology thus restricting its wider application.
commonly adopted in China, which
Insider reveals that SK Holding will uses chemicals like vanadium pentoxide
cooperate with more companies to and titanium dioxide as raw materials to
promote this enzyme technology in deal with pollutants of nitrogen oxide
TABLE 7: Major exhaust emission technologies in China
Technology Main adopters Launch time
ZH active carbon adsorbing organic exhaust gases Hangzhou South Environment Protective Coating Equipment
1993
purifying & recycling treatment technology Co., Ltd.
Jiangsu Zhongke Energy-Saving Environmental Protection
SCR chemistry catalysts technology 2006
Technology Co., Ltd.
Carbon dioxide reclaiming technology Chengdu Demei Engineering Technology Co., Ltd. 2001
High-voltage electrostatic trapping technology Gansu Kejin Environmental Technology Co., Ltd. 2002
Phosphorus emission reclaiming technology Yunnan Nanlin Group Co., Ltd. 2008
Source: CCM International
With the rising awareness of standard of ‘Absorption Gas Cleaner for which satisfies China’s demand for
environmental protection, more and Industrial Emission’, which clearly environmental technologies, is expected
more Chinese countries intend to seek stipulates the technical standards for to be accepted by more enterprises.
new technologies to reduce pollution. In popular waste treatment devices.
2008, Chinese government issued a Therefore, SCR enzyme technology,
BIO-BASED CHEMICALS
China’s citric acid export volume up but price down
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Despite US and EU’s anti-dumping year to 393,616 tonnes in the first seven the same period of 2008 since early
duties on Chinese citric acid in 2009, months of 2009 (FIGURE 9). Except to 2009.
China’s citric acid export volume has EU and US, export price of citric acid to
still kept increasing, up 1.2% year on other countries has slipped largely over
FIGURE 9: China’s citric acid export volume, Jan. ~Jul. 2009
80,000
68,707
70,000
62,089 60,624 62,905
60,000
53,910
48,181
50,000
(Unit: tonne)
37,200
40,000
30,000
20,000
10,000
0
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09
Source: China Customs
Respectively since Jun. 2008 and Sep. have been endeavoring to develop Although Ministry of Commerce
2008, EU and US have begun to levy other new and large markets like India, Administration has executed Export
high anti-dumping duties on China’s key Mexico, Thailand and Indonesia etc. License Administration on domestic
citric acid producers like Anhui BBCA after the anti-dumping duties had been citric acid exporters since early 2009,
Biochemical Co., Ltd. and Shandong implemented. Actually, India has totally this Export License Administration with
TTCA etc., which erodes Chinese imported 32,424 tonnes citric acid from relatively low requirements for domestic
players’ price advantage in these China during the first seven months in citric acid producers couldn’t efficiently
markets. 2009, up 39% over the same period of restrain pernicious price competition
2008, which makes it the largest among them. In order to enlarge market
As an export-oriented product, importer of Chinese citric acid currently. share in oversea markets with no
homemade citric acid’s encountering anti-dumping duties, domestic citric acid
anti-dumping sanction from EU and Prices of homemade citric acid exported exporters choose to cut down the price.
USA has seriously impacted domestic to EU and US have stayed at relatively
citric acid export, because nearly 40% high level of around USD1,000/t, due to Besides, decreasing raw material price
of China’s citric acid export was to EU anti-dumping duties during this period, also resulted in price fall of domestic
and US before. According to statistics but export prices to other countries like citric acid. Corn and sulphuric acid are
from China Customs, in the first seven Southeast Asia, Africa and South key raw materials for citric acid
months of 2009, US citric acid import America saw a big drop, ranging from production. In H1 2009, corn price
volume from China has decreased by USD680/t and USD820/t, remained similar to that in H1 2008, but
87.6% and EU import down 28%. USD100~200/t lower than that in the sulphuric acid price has plummeted to
first seven months of 2008. around USD30/t from USD245/t since
However, domestic citric acid producers the breakout of global financial crisis. At
17
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21. CCM Newsletter Industrial Biotechnologies China News
present, sulphuric acid price is still at in China. Once both sulphuric acid and and has exported around 80% of its total
low level of USD36/t and corn price corn price rise in the following months, output on average in recent years.
keeps stable at around USD234/t in citric acid price may also be pushed up However, its production has been
Northeast China. slightly in the market. restrained by the government due to
high pollution during citric acid
Citric acid export price has kept stable China has been the largest citric acid production.
currently, and it is hard to raise the price producer with total output of around
due to current citric acid surplus supply 750,000 tonnes per year in the world,
VC export price rises
Average export price of Vitamin C (VC) Customs (TABLE 8), in the first seven downtrend. The impacts of weak
has climbed up in the first seven months months of 2009, VC average export domestic demand have been partly
of 2009, continuing an uptrend price has reached USD10,297/t, up offset by the high VC export price.
compared to the same period last year. 29.6% compared to the same period
last year, while most of the other vitamin
According to statistics from China export prices have experienced
TABLE 8: China’s VC export situation, Jan~ Jul, 2009
Item Jan - Jul, 2008 Jan - Jul, 2009 Growth rates (%)
Export (tonne) 51,632 47,905 -7.2
Value (USD) 410,165,661 493,274,479 20.3
Average (USD/t) 7,944 10,297 29.6
Source: China Customs
The main reasons for VC export price low production cost.
rise are as follows: The four biggest domestic VC
In recent years, with strong enterprises include (FIGURE 10)
Firstly, China has become the world’s competitiveness of China’s VC, some Northeast Pharmaceutical Group Co.,
VC production base, thus enabling multinational corporations have Ltd (NPC), North China Pharmaceutical
domestic VC enterprises to price the gradually stopped VC production. As a Group Co., Ltd (NCPC), China
products. result, global dependence on Chinese Shijiazhuang Pharmaceutical Group Co.,
VC has gradually increased. For Ltd (CSPC) and Aland (Jiangsu)
As an important exporter of VC, China example, China VC export volume was Nutraceutical Co., Ltd. (Aland). The VC
has strong competitiveness in global VC less than 80,000 tonnes in 2007, but it export prices of these four enterprises
market. China produces VC by using increased to 85,239 tonnes in 2008. By all stayed at a relatively high level of
two-step fermentation process, which the end of 2008, China VC sales value about USD1,000/t, a big upthrust
has reached the world-advanced level had accounted for 86% of total VC sales compared with the same period last
and thus being prohibited for export. value in US market. At present, about year, signifying their strong pricing
Based on the technology edge, China’s 80% of the world’s VC products are power.
VC has good product quality and enjoys sourced from China.
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FIGURE 10: Capacity of major domestic VC enterprises in 2008
40,000
35,000
30,000
25,000
(Unit: t/a)
20,000
20,000 18,000
10,000
0
CSPC NPC Aland NCPC
Source: CCM International
Secondly, VC is mainly used in excellent sales performance after the VC enterprises had been in full
industries of pharmaceuticals, health outbreak of H1N1 influenza around the operation in the first five months this
food, and food additives, etc. that world, as VC preparation can effectively year. With sufficient VC supply in the
provide necessary daily products, thus prevent influenza. Besides, many new domestic markets, its price only
less being affected by economic kinds of VC composite preparations can fluctuated slightly in early June.
downturn. And VC only constitutes a also effectively enhance immunity and However, to curb the slight price decline
very small proportion of its downstream prevent influenza, so they had sold well this June, the four biggest VC
products’ cost, so downstream clients from last winter to this spring, thus enterprises decided to stop production
are not sensitive to the price change of promoting the soaring demand of VC. from July to September. As a result, VC
VC. price has risen in July, and is expected
In light of huge VC demand and its high to maintain uptrend in the near future
Thirdly, VC products have seen prices currently (FIGURE 11), the four with reduced supply.
FIGURE 11: Domestic VC export prices, Jan. – Jul. 2009
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10,800
10,600 10,551
10,558
10,400 10,415
10,409
10,202
(Unit: USD/t)
10,200
10,000 10,033
9,903
9,800
9,600
9,400
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09
Source: CCM International
In the long run, VC export price may autumn and winter this year. Secondly, small and medium-sized companies
maintain relatively high level, attributed the price of corn, one of VC’s raw plan to produce VC, their products only
to the following factors. Firstly, H1N1 materials, may keep at high level sell in domestic market, so their
influenza may continue its prevalence because of current severe drought in expansions can not affect VC export
for a long time and may break out in the China. Thirdly, although some domestic price.
Jianding Biotechnology established
Jiangsu Jianding Biotechnology Co., Ltd. benefits by reutilizing waste from crab shell as raw materials, which leads
(Jianding Biotechnology), a company production. to heavy metal residues and large
newly established on Aug. 10th 2009, amounts of ash contained in
has initiated the construction of For one thing, glucosamine, as an glucosamine products. With
first-phase production lines of 3,000t/a important health product, is widely used vegetarianism spreading over Europe
glucosamine and 12,000t/a activated as nutritional supplements for articular and US, enabling citric acid-based
carbon, which will be launched by the cartilage treatment, and is the only glucosamine products to become
end of 2009. health product approved by the medical greatly popular among consumers,
community and nutrition research glucosamine products produced by
Jianding Biotechnology has institutions in US and Europe, for its Jianding Biotechnology using this
independent technology for therapeutical effect on bone and joint technology is predicted to have a highly
co-production of glucosamine and diseases. The market value of competitive position in health products
activated carbon. Adopting this glucosamine and its downstream market as this technology is developed
technology, glucosamine can be products like health products and independently at home, and the
extracted from citric acid waste, and pharmaceuticals is estimated to reach overseas market has not obtained the
then the waste is further processed to USD7 billion. technology up to now.
produce high-quality activated carbon. For another, co-production of
This technology is believed to create Currently, domestic glucosamine glucosamine and activated carbon can
huge economic and environmental production mainly use shrimp shell and reduce environmental pollution. With its
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24. CCM Newsletter Industrial Biotechnologies China News
activated carbon capacity accounting for pollution. Therefore, using this With entry into health products industry
more than 1/3 of global total, China is technology can greatly relieve the in the 1980s, China has rapidly
the world’s largest producer of activated environmental pressure. developed in this field in the past
carbon, a major chemical material with decade. By the end of 2007, China has
annual consumption volume of more It is thus expected that Jianding approved more than 8,900 varieties of
than one million tonnes in the world. But Biotechnology will have a very important health products. And more than 1,640
currently, large quantities of high-quality position in China’s health product health product manufacturers have
timber and bamboo are consumed at industry, and will promote China’s achieved total production value of over
home to produce activated production overall health product industry to USD17 billion annually (FIGURE 12).
every year, leading to high energy develop more eco-friendly.
consumption and severe environmental
FIGURE 12: Glucosamine output in China, 2002~2007
10,000
9,000
8,000
7,000
(Unit: tonne)
6,000
5,000
4,000
3,000
2,000
1,000
0
2002 2003 2004 2005 2006 2007
Source: CCM International
Some enterprises from other industries China Health Care Association, said integration in health product industry,
are very optimistic on the future that some Japanese automobile which will change glucosamine
development of China health product companies with sufficient funds are manufacturers’ competitive landscape in
industry. In the end of 2008, , Wuliangye waiting for an opportunity to enter health China (TABLE 9).
Group Co., Ltd., a well-known liquid product industry in China.
brand, cooperated with Giant
Corporation to enter health care market. ‘Food Safety Law’ and ‘Rules of
Supervision and Administration on
Mr. Wang Dahong, Secretary General of Health Food Products’ will also promote
TABLE 9:Information of glucosamine manufacturers in China, 2008
Number of Number of
Locations Capacity '08, t/a Output '07, t Capacity '08 Output '07
manufacturers, ‘08 manufacturers ‘08
Zhejiang 9 7,150 3,430 33.30% 36.80% 38.00%
Jiangsu 9 4,960 2,645 33.30% 25.50% 29.30%
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