Company special: Adisseo listing recognition of company's global success

Following the restructuring of Bluestar New Chemical Material, a subsidiary of China National Bluestar Co, Adisseo, another Bluestar subsidiary and a global leader in animal feed additives, was listed on the Shanghai Stock Exchange in late October. The name of the company linked to the ticker symbol 600299 will be changed to Bluestar Adisseo Co.

Profile of Adisseo

Adisseo was founded in France in 1939 under the name Alimentation Equilibr??e de Commentry. It is one of the global leaders in animal feed solutions.

Adisseo's products include amino acids, vitamins, enzymes, minerals and trace elements. The company is the world's second-largest producer of methionine and the first in the protected methionine sector.

Adisseo has dealerships in 140 countries and regions and more than 2,500 long-term customers. It has four major plants in Europe and China and employs about 1,800 people worldwide, including more than 100 researchers in its seven research and development centers.

The company has invested more than 850 million euros ($922.7 million) during the past six years to build and modernize its plants. Half of that investment has been in China.

From France to China

Bluestar acquired Adisseo in 2006. Through this alliance, it gained support and a launchpad to take on the Asian market.

According to Bluestar, the demand for methionine in the Chinese market has always been large. In 2005, China imported some 120,000 metric tons of methionine. Methionine is an important additive in animal feed that can help animals grow more rapidly. In the future, the market for methionine in China is expected to continue to increase.

Robert Lu, president of Bluestar, said Adisseo has grown tremendously since it joined Bluestar.

Adisseo achieved annual sales revenue of 1.2 billion euros last year, increasing from about 500 million euros in 2006.

After the acquisition, Bluestar in China focused on advanced operation and management systems. Adopting new technologies from Adisseo, a new methionine production facility was built in China with an annual production capacity objective of 140,000 tons.

Lu said after Bluestar acquired Adisseo, Adisseo has seen enormous expansion worldwide, and specifically in Asia and China. Its sales have more than doubled since 2006, and its operating profit has grown even more.

Gerard Deman, chairman and strategy senior adviser of Adisseo Group and strategic committee member of Bluestar, said that thanks to the strong, trusting relationship forged between Bluestar and Adisseo's international management, and Bluestar's financial support, the company has been able to invest almost 1 billion euros over eight years in industrial projects, R&D and acquisition of new businesses.

For example the company has built and put into operation a new fully integrated methionine unit in Nanjing, Jiangsu province, to reinforce its cost and market position in the Asia-Pacific region. It also expanded its production capacity in its French and Spanish factories.

Investments in R&D have led to the expansion and upgrading of capacity at Adisseo's research centers. Adisseo has diversified its activities by taking over the Rhodia Group's sulphur and regeneration products division in 2007 and by acquiring Innov'ia, France's leading company in the design and formulation of powder and granulate additives, in 2011.

Adisseo also achieved spectacular development of their specialty products - enzymes and methionine for ruminants. A vitamin business was developed, with some materials sourced in China. More recently, an original selenium specialty was put on the market.

Adisseo has not only brought its world-class technologies, products, industrial standards and services to the Nanjing plant, but also handpicked highly qualified technicians and managers from its plants around the world to join the Nanjing operation.

Jean-Marc Dublanc, CEO of Adisseo Group, said that following advanced international management standards, hygiene, safety and environment have always been the top priority for Adisseo.

The Nanjing plant has been granted international quality certificates and currently has one of the best safety operations results in Adisseo.

Dublanc said the world's feed additive market is a "strong and dynamic" one, stimulated by the increasing demand for meat, milk and eggs linked to the growth of the global population.

The players in the feed additive market need to provide customers with top-quality, safe and sustainable products that help them meet this demand by optimizing feed cost and improving production performance while reducing environmental impact, Dublanc said.

Going public in China

Ren Jianxin, chairman of ChemChina and Bluestar, said Adisseo being listed on the Shanghai Stock Exchange shows "an obvious recognition of our success globally and in China". He said it is also a wonderful opportunity to achieve the company's longterm objective of establishing Adisseo as a key player in the health and nutrition segment.

"This unique status will increase our visibility on the Asian market and to the financial community and also business partners, such as customers and prospects, distributors and suppliers," he said. "It is also giving us access to additional financial resources to support the financing of our ambitious development plans."

Capital markets will be used to complement operating cash flow and debt to finance the company's future growth plans. These plans will demand not only financing of working capital, but also the financing of research and development and innovation, and the financing of new manufacturing capabilities for existing and new products.

The capital market "will also allow Adisseo to pursue selected acquisitions: this targeted external growth will complement our product portfolio to leverage our global market reach and our strong technology position", Ren said.

Becoming a listed company will not change Adisseo's future strategy, of which aims for sustainable growth, he said.

Dublanc said Adisseo is improving its existing product lines in terms of environmental impact, cost, eficacy and service, and the company is also developing new products, services and applications.

Deman said the Bluestar Group has "consistently supported the investment proposed by Adisseo, not only in China but also in Europe".

zhuanti@chinadaily.com.cn

(China Daily 12/18/2015 page14)