In 2019, Adisseo's functional product gross profit margin was stable, and various measures were taken to improve competitiveness

Adisseo recently released its 2019 annual report.

At present, Adisseo is the second largest methionine producer in the world, and it is one of the few manufacturers that can simultaneously mass produce liquid and solid methionine.

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Competition landscape of methionine in 2019EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

The production capacity of the global methionine market is highly concentrated, controlled by industry giants such as Evonik, Adisseo, Novus and Sumitomo

The above-mentioned international industry giants have gradually increased their investment in Asia in order to consolidate their current market positions

Given that the global market demand is 1.

Methionine demand and trend in 2019EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

From the perspective of demand, according to the company's internal forecast, the global methionine market demand is growing at a rate of 5-6% per year

From the perspective of supply, the new capacity announced by competitors was finally released to the market from mid-2015 after some delays

　　The negative impact of the decline in the price of methionine was partially offset by the strong increase in sales of liquid methionine, the decline in raw material prices brought about by the decline in crude oil prices, and strict cost control

　　In 2019, the price continued to fall until it fell below 1.

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　　Adisseo plant capacity changes in 2019EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　There are currently two production platforms (located in Europe and Nanjing, China), and in January 2018 it was decided to establish a new Nanjing plant phase II project in Nanjing (adjacent to the existing Nanjing plant)

　　The European production platform, the early production platform, is mainly composed of four factories: Les Roches factory (upstream raw material factory), which mainly produces MMP, the first intermediate for the synthesis of methionine, which is supplied to the Commentry factory and Roussillon factory in France to produce solids.

　　After the European production platform expansion project is completed, the production capacity of the European plant of liquid methionine will increase by 50,000 tons/year

　　In order to meet the growing needs of customers and consolidate its leadership position, the board of directors of Bluestar Adisseo Co.

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　　Strong research and development capabilitiesEVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Adisseo's research and development mainly focus on the following aspects: 1) environment and biological safety; 2) raw materials and nutrition; 3) microbiota and intestinal balance; 4) protein quality

　　Integration of methionine upstream and downstream production processesEVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Adisseo integrates the upstream and downstream production process of methionine, and its production process can be extended to propylene, sulfur and other basic raw materials to ensure the stability and reliability of the supply of high-risk intermediates for the production of methionine

　　Functional product production network and transportation modeEVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The important raw materials that Adisseo purchases externally are propylene, methanol, natural gas and sulfur products

　　Adisseo’s functional product production network consists of seven factories-five in France, one in Spain, and one in China
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In the main market areas, Adisseo authorizes licensed manufacturers and processors to produce specific products or businesses
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These factories supply products to customers all over the world through direct sales or distribution networks
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Adisseo's products are directly supplied to customers from the factory or shipped to regional warehouses
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　　Taking the Chinese market as an example, in order to ensure that products are delivered to customers across the country on time and safely, Adisseo has established a multifunctional supply chain transfer center in Nanjing, and also established 10 regional distribution and storage centers across the country based on customer aggregation.

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At the same time, it can also ensure that Adisseo's products are exported from China to various countries in the world
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The company has set up a special warehouse in the Shanghai Free Trade Zone to store various products purchased from the Chinese market and directly supply them to global customers or regional warehouses
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　　The main raw materials are transported by each supplier
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For intermediate products, Adisseo uses special railway tank wagons for transportation for safety reasons.
In 2019, a total of 283,500 tons were transported in Europe
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Compared with 865,800 tons in 2018, Adisseo's global transportation volume of finished products in 2019 was about 858,200 tons
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　　There are many ways to transport finished products, mainly by road
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The means of transportation include: trucks, dry cargo and refrigerated containers, oil tankers, railway tank cars, international standard tank containers and bulk chemical tankers
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The following figure shows the comparison of the cargo volume of each transportation mode in each region in 2019:EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Adisseo takes various measures to improve competitivenessEVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Adisseo’s competitors mainly come from large, well-known companies with strong financial resources, and it also faces competition from many other companies in the regional or local market
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China's new entrants (Ningxia Ziguang, Xinhecheng) started operating their new factories between 2016 and 2017
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Almost all manufacturers (Sumitomo, Evonik, Adisseo) have successively announced that they will have new production capacity online in 2019-2023 (Novius announced the cancellation of new expansion plans in 2019)
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On the other hand, CJ uses some production processes that do not rely on petrochemical raw materials, and strives to reduce its production costs by opening up diversified and more competitive sources of raw materials
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EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Adisseo has taken various measures to improve its competitiveness, including strict cost control, continuous improvement of production technology, increase in production capacity, provision of high value-added services and continuous enrichment of its product portfolio:EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Ÿ The European production platform expansion project has been completed and started to run: by adding new production lines to the Burgos factory and Les Roches factory, and at the same time additional investment in the existing intermediate production equipment, the annual production capacity of the European factory is increased by 50,000 tons;EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Ÿ Based on the liquid methionine technology ("HMTBA"), a new powdered methionine product, Rhodimei® A-dry, allows customers who cannot use liquid methionine due to product or production technology to enjoy liquid methionine The benefits
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The launch of Rhodimate® A-dry will help Adisseo become the world's leading supplier that can cover a full range of methionine products, meet the full needs of feed manufacturers, and create value for them;EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Ÿ The expansion project of the Nanjing plant was completed in early 2019
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The project helped Adisseo increase its annual production capacity to 170,000 tons and further improve its production efficiency;EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Ÿ The Nanjing Liquid Methionine Plant Phase II project with an annual production capacity of 180,000 tons continues to progress
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After the completion of the second phase of the project, Adisseo will help Adisseo meet growing customer demands and will further enhance Adisseo's cost-effectiveness
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Adisseo is also taking all feasible measures to meet environmental protection requirements, and is preparing for the upcoming new environmental protection policy in advance;EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

 EVG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Ÿ As the company's second business pillar, Adisseo is actively developing specialty products business to better improve animal production and health
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Adisseo actively explores innovative products and is full of confidence in the huge development potential of special products in the future
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After the integration, the Niu Aidi company is very complementary to Adisseo in terms of product portfolio, animal categories and target markets.
The merger will help Adisseo create integrated solutions and create more value for customers
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EVG China Feed Industry Information Network-Based on feed, serving animal husbandry