Two Chinese Lysine Factories To Close

Ajinomoto Co. Ltd. has announced it is to close its lysine factory in Chengdu Sichuan, China.

The plant had a capacity of around 31,000 mt per annum of feed grade lysine.

It has yet to be confirmed if the plant will be permanently shutdown. High raw material costs combined with disappointing Lysine prices have prompted the decision to stop production, it said.

This facility was Ajinomoto's only facility for feedgrade lysine producion in China. The demand for lysine in China is estimated at around 250,000 mt per annum (approximately 25% of global demand).

In addition to this closure, it is also understood that another smaller Chinese Lysine facility (manufacturing 15,000 mt pa) will also cease production during September 2008 due to poor profitability.