Hong Kong, Jan 21, 2010 (ABN Newswire) - The previous analysis in different dimensions including degree of production concentration, strength of industry barrier and the business model lead a conclusion that there are now clearly recognisable tiers in China's glutamic acid & MSG industry. Fufeng stands out of its peers.
In the previous two reports, we have analysed the performances of Fufeng and others after the cycle of consolidation. As we expected, increased production concentration has brought a golden era in 2009 to leading enterprises such as Fufeng and they Enjoyed a continued strong growth in both revenue and gross profit.
We have analysed the costs of the industry and do not foresee unfavorable changes in this area in the next half year. Although more companies are expected to enter into this sector during the recovery period, the implementation of smoke gas treatment standards will lead to another round of industry consolidation. However, enterprises such as Fufeng are already prepared for this round of policy-oriented consolidation.
Our study on the development history of global glutamic acid & MSG industry shows the current industry development has the following: export-oriented international market development; market-oriented end Blue Ocean; and technology-oriented industry extension. Fortunately we have continued to observe that China's leading enterprises in the industry are moving towards these directions.
Fufeng is one of the leading vertically integrated manufacturers of corn-based biochemical products principally utilizing fermentation technology in China. It is mainly engaged in production of MSG related products and xanthan gum. MSG products include MSG, glutamic acid, fertilizers, corn refined products, starch sweeteners, threonine, corn oil, branched-chain amino acid and chicken powder. Fufeng is the largest MSG and xanthan gum manufacturer in the world. For further information, please visit the Company website: www.fufeng-group.com .
Fufeng Group Limited
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