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Why is Meihua Group Increasing Threonine Capacity Greatly?

China Agriculture Report By CnAgri2017-08-23 09:54:16China Agriculture Report Print On August 10th, Meihua Group signed an agreement on 3-million-ton corn further processing project (RMB 10 billion) with Baicheng of Jilin. This project mainly includes 400,000 MT of lysine, 300,000 MT of threonine, 30,000 MT of tryptophan, 10,000 MT of valine, 500,000 MT of functional sugar and 300,000 MT of aginomoto. This project would be divided into 3 phases and finished within 6 years. After many companies announced to increase threonine capacity in 2017, why is Meihua continuing investing in this product?  
It is mainly because of advantages of capacity, market, technology, customer, etc. Meihua Group is the domestic biggest threonine producer, whose capacity is 220,000 MT, accounting for more 30% of the domestic. Besides, Meihua Group’s threonine operating rate is far higher than the average level of industry, and 2016 reached more 90%, having a high capacity utilization. So, Meihua Group’s threonine market share is upward of 50%, owing stable channels and customers. 
If Meihua Group is gradually increasing capacity, along with other companies increasing capacity, Meihua Group will be gradually losing its position and market advantage in industry. Along with above projects putting into operating, the market share of threonine capacity owned by Meihua Group is increasing, bringing strong influence on market and having better advantages among competition in the future. 

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