Dacheng biochemical will increase the production and export of lysine

Introduction: Hong Kong news on February 21: Kong Zhanpeng, executive director of Dacheng Biochemical Technology Group Co., Ltd., a large lysine producer in China, expects that the price of lysine will fall nearly 6-26% compared with the same period last year, but it is still normal The company will expand production and increase exports to avoid the impact of the drop in lysine price on profits Kong Zhanpeng said that the company's average selling price of lysine last year was about rmb17000-19000 per ton Due to stable supply this year, the price of lysine is expected to be rmb14000-16000 per ton In this case, the decline is about 6-26%, and the average decline is about 17% In the first half of last year, lysine business accounted for nearly 70% of the company's gross profit However, he estimated that the production of lysine and starch lysine could be increased to 100000 tons and 140000 tons respectively this year Last year, the company produced 49000 tons of lysine, compared with 94000 tons of starch lysine, which was only put into production in the first half of last year He added that the company exported 17000 tons of lysine last year, with a target of 80000 tons this year, an increase of more than three times He revealed that the company exported 6000 tons of lysine in January this year Although the price of lysine fell, Kong Zhanpeng pointed out that according to the statistics obtained by the company, the demand for lysine in China last year reached 150000-160000 tons, up 15-20% year on year He expects that the demand for lysine will increase to 180000-200000 tons this year, due to the continuous growth of demand for lysine in China's feed market, the increase of feed unit addition and the significant increase of demand for exports to Southeast Asian countries Efeedlink.com, a website specializing in feed industry information, pointed out that in 2003, due to the collapse of large international lysine producers, the price of lysine had risen to nearly 50000 yuan per ton, and then fell back Before the implementation of macro-control in China at the beginning of last year, the price was nearly 35000 yuan per ton, and fell to 14000-20000 yuan in the second half of last year Kong Zhanpeng said, "although from the perspective of suppliers, the rise of lysine price is beneficial to us, but it is not rational to rise to more than 30000 yuan per ton In fact, the cost per ton is only less than 9000 yuan." The price of raw material corn will be stable this year, Kong Zhanpeng pointed out that the price of corn has recently fallen to 1000 yuan per ton or below, down 5-10% on an annual basis, due to the abundant harvest of corn, the main raw material for the production of biochemical products such as lysine, by the end of last year He estimated that China's corn supply may increase by 10% this year, and corn prices will be stable He said that at present, the company has ensured the raw material reserve of 400000 tons of corn, which can be used for four months He believed that even if the price of corn fluctuated in the future, the impact on the company would be small Last year, Dacheng biochemical's corn processing capacity reached 1.8 million tons, of which 1.2 million tons were provided to the company's Changchun plant for conversion of corn biochemical products Corn, the main raw material for the production of biochemical products such as lysine, sold for up to 1350 yuan per ton in May last year, the highest price since the opening of corn market in 2000 After macro-control, the price of corn dropped to about 1250 yuan per ton In addition, Kong Zhanpeng disclosed that last year, the company has invested $1 million to develop new strains to improve the conversion rate of starch lysine If the conversion rate is higher, the less starch is used, and the cost can also be reduced Last year, the company's conversion rate was 15%, and the company's goal was to increase it to 18-19% Vigorously develop polyol business he said that China's demand for polyols is 4 million tons, while China's own production is only 1 million tons, many of which need to be imported At present, polyols are "oil conversion", so the production cost is relatively expensive Dacheng biochemical has a good eye on this market It has developed a polyol project with corn starch as raw material In July last year, the company officially started trial production of polyols, with an initial production capacity of about 20000 tons, mainly for automobile antifreeze The company aims to increase its production capacity to 220000 tons in 2006 The average price per ton is about 10000 yuan At present, the company has invested US $5 million in the polyol project He said using crops instead of oil by-products as raw materials to make up for the current shortage of oil resources can save the production cost of polyols At the current high crude oil price of about 48 US dollars per barrel, he analyzed that the production cost per ton of polyols is about 7500 yuan per ton, and if starch is successfully used as the production raw material, it is only about 4500 yuan per ton Last year, the company raised about HK $830 million in net equity, of which more than HK $500 million was used to develop polyol business, and the rest about HK $300 million was used for expansion.