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CJ Ceiljedang, plans to construct a green bio factory in Malaysia

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CJ Ceiljedang is moving rapidly to be positioned as No.1 exclusive supplier in global green bio market. CJ Ceiljedang is scheduled to construct a green bio factory in Malaysia which produces 80 thousand tons of methionine that is an amino acid for animals investing more than a total of 400 million Dollars establishing partnership with Arkema in France.

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CJ Ceiljedang had a ground breaking ceremony for the methionine factory on last 6th in Kerteh located at the state of Terengganu in Malaysia while the CEO of CJ Ceiljedang Kim Chul Ha, the chief of bio department of CJ Ceiljedang the vice president of CJ Jung tae Jin, the Prime Ministry of Malaysia Mohd Najib Bin Tun Abdul Razak and other Malaysian government officers have participated in the ceremony.

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This green bio factory is scheduled to have 80,000 tons of production capacity per year for methionine and will be completed by the end of 2013. This product is very meaningful as it is a methionine which is produced by environmental-friendly bio engineering method using raw sugar and glucose for the first time in the world after 8 year’s research and development (R&D) CJ Ceiljedang is scheduled to produce methionine on full fledged basis in this Malaysian factory from 2014.

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This indicates that there will be a very steep competition in methionine market in which 4 companies including Evonik of Germany, Adisseo of China, Novus of USA and Sumitomo of Japan exclusively occupy more than 95 of market share. Unlike a conventional production of methionine from existing companies, differentiated and environmental-friendly methionine production method from CJ Ceiljedang is expected to change a paradigm of methionine market.

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“CJ Ceiljedang absolutely needs actions in methionine market which has high probability of market growth and profitability to extend global bio business area in the future” and “CJ Ceiljedang will have great influence upon global market with the first environmental-friendly bio engineering based production of methionine in the world” said Kim Chul Ha, the CEO of CJ Ceiljedang. Especially, the factory in Malaysia attracts people’s attentions as it is the first company in the world which produces 4 major essential amino acids (methionine, lysine, threonine and tryptophane) for animals with environmental-friendly bio engineering. Although leading companies in green bio markets have already built the system for 4 major essential amino acids for animals, methionine has been produced using petroleum only by chemical engineering.

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Although world class bio companies have attempted to produce methionine based on environmental-friendly method, they all failed to commercialize it. CJ Ceiljedang secured original patents through last 8 year’s research and development and concentrated on development of various technologies. In addition, it is expected that methionine is stably produced through cooperative partnership with Arkema which has long experiences and various know how regarding core materials for methionine.

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Especially, as there is a big advantage which is economical thanks to utilization of environmental-friendly bio material such as sugar cane and corn to cope with possible depletion of petroleum, a great response is expected from global markets. Kulti province in Terengganu where this methionine factory is constructed is located on east coast of Malaysia. This place is the best location to export methionine using harbor facilities in nearby Kuantan. Although methionine is also exported to European countries and USA in long term basis, this place is a good location to focus on China and Asian countries where demands for methionine are rapidly increasing. In addition, there is another advantage to secure essential infrastructures, equipments and raw and auxiliary materials easily, which gives cost competitiveness.

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Methionine, with its 4 billion’s Dollar’s world market, an essential amino acid to be added to animal feeds, occupies the biggest share among essential amino acid markets for all animal feeds along with lysine (4 billion Dollar’s market) This is a high value added industry which most of companies except few leading companies who have already pre-occupied markets can’t even dream of entering markets as even chemical engineered technologies including environmental-friendly bio engineering have higher barrier against market.