Recently, Adisseo CEO Jean Mark said in an exclusive interview with China Securities News that after the new Nanjing plant is put into operation, it is expected to reduce the cost of the company's liquid methionine products by 20%. In the specialty business, Adisseo announced the acquisition of Belgian feed additive producer nutriad in 2017 and expects to achieve consolidated results in 2018.
Expand production capacity to meet market demand
Adisseo recently announced that the company's board of directors has approved the construction of a new liquid methionine plant in Nanjing (referred to as the "new Nanjing plant"), which is expected to be put into operation in mid-2021, with a total investment of about 490 million US dollars, funded by the company's own funds. The project payback period after the plant is put into operation is about four years.
Jean Marc said that as a leader in the global liquid methionine market, Adisseo continues to reduce product costs and keep the factory competitive as a priority.
It is understood that the plant will be Adisseo's third liquid methionine platform in the world. Previously, the company owned the first world-class plant in Burgos, Spain, and the second was the Nanjing plant, which had been built and put into operation.
According to relevant estimates, the global methionine market has maintained a compound annual growth rate of 6%, and Adisseo expects the annual growth rate of liquid methionine to exceed 10%. This made Jean Marc very optimistic about the market prospects for liquid methionine.
According to relevant statistics, the current penetration rate of the global liquid methionine market is 30%-35%, of which the United States, Brazil, Mexico, Thailand and other chicken producing countries exceed 40%, and some even exceed 60%. "From the perspective of the global market, the penetration rate of China and India in the liquid methionine market is still low, and the market space is still very large." Jean Marc said that the completion of the new Nanjing plant will greatly help the Chinese and Indian markets to increase the penetration of liquid methionine in feed.
According to relevant data, China is currently the world's second largest poultry producer, producing 17 million tons of chicken meat per year, accounting for about 18% of the total global production. Previously, relevant data released by cbndata and Tmall showed that the healthy diet of China's national diet will shift to fresher, more natural and more nutritious. Jean Marc said that with the strengthening of people's health management, healthier dietary methods such as white meat are becoming more and more accepted, which will further stimulate chicken consumption in emerging countries such as China and India, and also help to expand the penetration of the liquid methionine market.
Adisseo CEO Jean Marc
Jean Marc expects the penetration rate of the global liquid methionine market to reach 50% in the coming years.
The construction of Adisseo's new Nanjing plant is to accommodate the expected development of the liquid methionine market. Jean Marc said Adisseo will effectively cover the world's major liquid methionine consumers worldwide, relying on two world-class plants currently in production and a new Nanjing plant that will operate in 2021. Jean Marc said that both the existing Nanjing plant and the new Nanjing plant use the best technical processes and the strictest environmental standards. "Take our existing Nanjing plant, for example, after relevant technical reforms, the output of the factory increased by 30% in 2016, while the wastewater discharge was reduced by 25%."
According to Adisseo's calculations, with the current liquid methionine production process and advanced environmental protection standards, Adisseo's new Nanjing plant can achieve a cost reduction target of 20% after it is put into operation, "which will further enhance Adisseo's competitiveness in the liquid methionine market." ”
Digitalization improves supply chain efficiency
In the supply chain, Adisseo uses digital operations to transform the supply chain to improve shipment efficiency.
Adisseo implemented the "We Move" project in 2017. Jean Marc said that the project is to optimize the organizational structure of the enterprise, so that the management is more flexible, more international and more customer-centric. It is understood that as part of the project, Adisseo has launched a customer-facing e-commerce platform with the help of the Chinese chemical platform based on Alibaba technology, so that customers can purchase products more conveniently. "After the Spring Festival in 2018, we will also launch relevant plans for electronic value-added services." Jean Marc revealed.
At the same time, in 2018, Adisseo will also promote the consolidation of related M&A assets. Previously, Adisseo announced that it would acquire the multinational feed additive supplier nutriad.
It is understood that nutriad, headquartered in Dendrmond, Belgium, has 4 laboratories and 5 factories in Belgium, Spain, the United Kingdom, China and the United States, and the company's annual sales total is about 100 million US dollars. Nutriad has been producing feed additives for over 50 years and has a range of products for palatability solutions, mycotoxin management and improved digestibility. In addition to the poultry and pig business, nutriad's business also includes aquatic animals, dairy cows and beef cattle.
Jean Marc said that the completion of the acquisition of nutriad will allow Adisseo to expand sales and broaden the performance dividend. Secondly, Adisseo and nutriad businesses are highly complementary, and nutriad's feed additive products that enhance animal nutrition and health have a high market value. Finally, Nutriad has performed well in the aquatic feed market, and the company itself has a mature research and sales team.
"After achieving the merger in 2018, Adisseo may be more expected in terms of performance." Jean Marc said.
A-share listing enhances brand recognition
It is understood that Adisseo was acquired by China Bluestar, a subsidiary of ChemChina, in 2006. After the acquisition, Adisseo's Chinese and French teams worked together to achieve rapid development of the company.
"Adisseo is a Chinese company in China. We have successfully built and operated a world-class methionine plant in Nanjing, and we are also increasing our investment to accelerate our growth in China, such as our recently announced investment in the construction of our second Nanjing plant. Jean Marc said.
In 2015, the management of ChemChina and Bluestar china proposed to let Adisseo be listed on A-shares through asset replacement, so that Chinese investors can enjoy the dividends of Adisseo's rapid development.
Jean Marc said that China's capital market is developing rapidly and is becoming more and more international. The inclusion of a-shares in the MSCI Emerging Markets Index last year confirmed this trend. As the first global company and industry leader to land on A-shares, we believe we represent the future and we can bring excellent investment returns to investors.
Jean Marc said that the A-share listing in China has also further enhanced Adisseo's brand recognition in China and provided a better platform for our future domestic and international mergers and acquisitions. The valuation of A-shares is relatively high, and the financing channels are relatively abundant, which can provide a better refinancing platform for listed companies, so it also provides greater possibilities for Adisseo to achieve leapfrog growth in the future.
![Adisseo's net profit for the first half of 2020 was 719 million, up 35% Liquid methionine business continued to grow[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)