Bluestar Adisseo is the world's second largest producer of methionine. [Photo / China Daily]

Listing to help firm achieve sustainable development

BEIJING - Ren Jianxin, president of China National Chemical Corp (ChemChina), says that "Pearl on the Crown" describes the Bluestar Adisseo Nutrition Group, one of their subsidiaries.

Bluestar Adisseo is planning to raise as much as $1.56 billion from an initial public offering (IPO), and is banking on its strong industry position to get a good responses from investors, Ren said.

The animal nutrition feed additive sector that Bluestar Adisseo is involved in has high growth potential globally, he said.

"The IPO can help the company achieve sustainable development."

Currently, Bluestar Adisseo is the world's second largest producer of methionine. Its Vitamin A output ranks third in the world, and Vitamin E fourth.

Methionine is an important ingredient in animal feed. The world's top four producers account for about 90 percent of the product worldwide.

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The company will use 40 percent of the IPO proceeds to expand and improve its European plants, and another 40 percent to develop its feed business, according to a company statement.

The move will help Bluestar improve its technology and management, making ChemChina more multinational, said Ren.

Bluestar is building a large plant in Nanjing to produce liquid methionine. The plant is expected to come on stream in the second half of 2012, with a capacity of 140,000 tons.

According to a new report from Global Industry Analysts released this year, China is the second largest manufacturer of animal feed, and one of the largest consumers of methionine in the world.

However, China currently has no methionine producer, but estimated annual demand stands at 120,000 tons.

Robert Lu, chairman of Bluestar Adisseo, expects the group's net profits to rise rapidly after the Hong Kong IPO, because of the mainland market prospects.

The specialty chemical industry has big potential in China, analysts have said. Although China has become the top market for chemicals, it badly needs advanced technologies, they said.

Bluestar Adisseo's IPO plan is in line with the ChemChina strategy, which focuses on developing new materials and specialty chemical products, said Ren.