Degussa Chinese joint venture for L-Lysine
During the course of 2005 an L-Lysine production plant at the Cathay site in Jining, Shandong province will be constructed.
25/01/05 Degussa’s Chinese affiliate Degussa China Ltd. has signed a joint venture contract with Shandong Cathay Lineng Biotechnology Co., Ltd. ("Cathay"), Shandong, China, to establish a company for the production of L-Lysine. Degussa will be the majority shareholder of the joint venture called Degussa Cathay Biotechnology Co., with a 51 percent stake for Degussa and a 49 percent stake for Cathay.
During the course of 2005 the joint venture will construct an L-Lysine production plant at the Cathay site in Jining, Shandong province. The initial annual capacity of the new plant will be 40,000t of Biolys (Degussa`s L-Lysine product). The joint venture concept also includes plans to expand the plant`s total annual capacity to 120,000t by the year 2007/2008.
L-Lysine is an essential amino acid for animal nutrition. The ingredient optimizes feed formulations, reduces the cost of animal production and minimizes the excretion of nitrogen. The essential amino acid has consistently improved the quality and productivity of livestock. As a result L-Lysine is now a key feed additive for the growing pork and poultry market in China.
