Glycine survey in china

CCMData & Primary Intelligence
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Glycine Survey in China
- The Third Edition
November 2010
Researched & Prepared by:
Guangzhou CCM Information Science & Technology Co., Ltd.
Guangzhou, P. R. China
Copyright by Guangzhou CCM Information Science & Technology Co., Ltd. (P. R. China)
Any publication, distribution or copying of the content in this report is prohibited.
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Tel: +86-20-3761 6606
Fax: +86-20-3761 6968
Email: econtact@cnchemicals.com

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Description:
Glycine, including tech-grade, feed-grade, food-grade, pharmaceutical-grade, is widely used as
raw materials for CMC, agrochemicals and surfactant. China is not only a major production base
of glycine, but also a large consumer.
Glycine has experienced strong growth momentum over the past few years especially after 2007,
seeing a surge in demand at home, which pushes up capacity expansion and output increase.
China’s glycine capacity is expected to reach 370,700t/a in 2010, and its output was over 150,000
tonnes in 2009.
Besides production situation, this report also provides answers to the key issues in Chinese
glycine industry as follows.
(1) Chongqing Sanxia Yingli Chemical Company is the first and the only company adopting natural
gas as starting raw material to produce glycine in China, and it has suffered a lot in its glycine
business notably from unstable production, immature technology etc. What’s its current situation
and how it will get out of the predicament to seek further development?
(2) Glycine industry has encountered poor profit and low price in 2009, due to the sluggish
glyphosate. What is the development trend in 2010 and even to 2014? How about the industry
integration of glycine and its upstream products?
(3) At present, in what field glycine is applied in China? Will other potential end-use segments be
developed?
You can also figure out the breakdown of drivers and barriers for Chinese glycine industry, as well
as the forecast on glycine development in China in 2009~2013.
Main content:
No. Content Page
Chapter One Introduction 1
Research objectives 1
Reasons for doing this research 1
Scope of report 2
Methodology 2
Information sources 3
Chapter Two Executive summary 4
Chapter
Three
Overview of glycine in China 5
III-1 Introduction 5
III-2 Classification of glycine 5

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III-3 Driving forces for the industry 6
III-4 Technology progress of glycine 7
III-4.1 Brief introduction of chloroactic acid ammonolysis process 7
III-4.2 Brief introduction of Strecker process 8
III-4.3 Brief introduction of hydantion process 9
III-4.4 Brief introduction of Sanxia Yingli’s natural gas-HCN process 10
III-4.5 Development trend of glycine technology 11
III-5 Regulatory issues 11
III-6 Industry players 13
Chapter Four Market summary and assumption 17
IV-1 Historical evolution of glycine markets 17
IV-1.1 Price 17
IV-1.2 Export 19
IV-1.3 Markets by grade 28
IV-2 Predicted market value 29
IV-2.1 Markets by grade 29
IV-2.2 Pricing summary 30
IV-3 Market challenges 31
Chapter Five Industry structure and competitive analysis 33
V-1 Market segmentation 33
V-2 Brief introduction to major end-use segments 33
V-2.1 Glyphosate 33
V-2.2 Food 37
V-2.3 Feed 37
V-2.4 Pharmaceutical 38
V-3 Industry concentration of glycine materials 39
V-3.1 Urotropine 39
V-3.2 Chloroacetic acid 40
V-4 Industry concentration of glycine companies 42
V-5 Market trends 44
Appendix Glycine suppliers 45
VI-1 Hebei Donghua Chemical Group 45
… … 72
VI-20 Baoding Mantong Fine Chemistry Co., Ltd. 74
Executive summary:
Four grades of glycine are produced in China, namely tech-grade, feed-grade, food-grade and
pharmaceutical-grade. Among them, tech-grade glycine has been dominating the whole glycine
market, accounting for XX% of the national glycine output in 2009.
Chinese glycine industry has witnessed fast development in recent years particularly since 2007.
Though the outbreak of global financial crisis in 2008 depressed glyphosate industry in the whole

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2009, the capacity of glycine, whose demand is highly subject to Chinese glyphosate market, still
kept a rapid increase in 2009, up to XX t/a with over XX companies were active in glycine
production. Despite growing capacity, glycine supply had exceeded the demand in 2008, and the
fast expansion in 2009 worsened this situation. The operating rate of glycine in 2009 stayed at low
level of only XX%.
Hebei Donghua Chemical Group is the top glycine producer in Asia with capacity of XX, and the
company produced about XX tonnes of tech-grade glycine in 2009.
Almost all Chinese glycine producers adopt a lagging technology called chloroacetic acid
ammonolysis process. Sanxia Yingli is the only company in China adopting Natural gas-HCN
process (improved Hydantion process) to produce glycine though it has suffered a lot in its glycine
business notably from unstable production, immature technology and profit loss, etc.
Chinese glycine production is highly concentrated, while its upstream industry including both
chloroacetic acid and urotropine are scattered.
Glycine producers have witnessed poor profit or even loss in 2009 due to sluggish glyphosate
market and glycine oversupply.
The price of glycine is closely related to urotropine and chloroacetic acid (its key raw materials), as
well as Chinese glyphosate market. Hebei Donghua has been playing a dominant position in
glycine pricing since it shares more than XX% share of Chinese tech-grade glycine market.
Quite different from the overseas consumption structure, the largest end use segment of glycine in
China is glyphosate, followed by pharmaceuticals, dyeing, carboxymethyl cellulose (CMC),
carboxymethyl starch etc. Output of glyphosate by AEA pathway reached XX tonnes in 2009,
consuming about XX tonnes glycine totally. Around XX tonne glycine is consumed to produce 1
tonne glyphosate.
Chinese glycine industry trends to develop stably in the coming few years with global economic
recovery, promotion of GM crops especially GM soybean and GM corn, and sustained demand for
glyphosate, etc.
Character of CCM' Report:
The aim of this report is to provide powerful assistance to the strategy group and the management
team in making correct decision as how to penetrate the ever-increasing China market and how to
catch the maximum commercial opportunities. The report is formulated independently by CCM’s
professional market researchers, based on the first-hand and primary data which are analyzed by
scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities,
and presented in a logic way.
Sample pages：

Chapter Three Overview of glycine in China
III-4.1 Brief introduction of chloroactic acid ammonolysis process
Table III-4.1.1 Raw material consumption of chloroactic acid ammonolysis process in China,
Feb. 2009
No. Raw materials Purity, % Unit consumption, t/t Price, USD/t Unit cost, USD/t
1 Chloroactic acid xxxxx xx xx xx
2 Liquid ammonia Tech-grade xx 410.1 xx
3 Urotropine xxxxx xx xx xx
4 Methanol xxxxx xx xx xx
Total xx
Table III-4.4.1 Raw material consumption of natural gas route in China, Feb. 2009
No. Raw materials Purity, % Unit consumption, t/t Price, USD/t Unit cost, USD/t
1 Natural gas xx xx xx xx
2 Liquid ammonia xx xx xx xx
3 Carbon dioxide xx xx xx xx
4 Formaldehyde 37 xx xx xx
Total xx
III-6 Industry players
Table III-6.2 Production situation of Chinese glycine companies, 2009
Capacity '09, t/a
Output '09,
tonne
Output '08,
tonne
No. English name
Tech
-grade
Others
Tech
-grade
Others
Tech
-grade
Others
Output of
tech-grade
'07, tonne
Operating rate
of tech-grade
'09, tonne
1 Hebei Donghua XXX XXX XXX XXX XXX XXX XXX XXX
2 Sanxia Yingli XXX XXX XXX XXX XXX XXX XXX XXX
3 XXXXXXXXXX XXX XXX XXX XXX XXX XXX XXX XXX
9 XXXXXXXXXX 10,000 XXX XXX XXX XXX XXX XXX XXX

16 XXXXXXXXXX XXX XXX XXX XXX 2,000 XXX XXX XXX
20 XXXXXXXXXX XXX XXX XXX XXX 500 XXX XXX XXX
36 XXXXXXXXXX XXX XXX XXX XXX 500 XXX XXX XXX
Total XXX XXX XXX XXX XXX XXX XXX XXX
Chapter Four Market summary and assumptions
IV-1.1 Price
Table IV-1.1.1 Price change of tech-grade glycine, 2006-Jan.2010
No. Stage Price Reasons
1
Jan. 2006 -
Oct. 2006
Decreased from USD2,001/t in Jan. 2006 to
USD1,764/t in Oct. 2006, down 1.39%.
XXXXXXXXXXXXXXXXXXXX
2
Nov. 2006 -
Sep. 2007
3
Dec. 2007 -
Feb. 2008
4
Mar. 2008 -
Apr. 2008
XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXX
5
May 2008 -
Jun. 2008
6
Jul. 2008 -
Nov. 2009
7
Nov. 2009 -
Jan. 2010

IV-1.2 Export
Table IV-1.2.6 Glycine exports of Chinese major producers, 2009
Feed-grade Food-grade Pharmaceutical-grade Total
No. Manufacturers Quantity,
tonne
Price,
USD/kg
Quantity,
tonne
Price,
USD/kg
Quantity,
tonne
Price,
USD/kg
Quantity,
tonne
Price,
USD/kg
1 Hebei Donghua xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
2 xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
11 xxxx xxxx xxxx 66.200 1.89 0 0 xxxx xxxx
Total xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
IV-3 Market challenges
Chinese glycine industry will face many challenges such as the financial crisis across the world
and oversupply of glycine in the future, so China will accelerate integration of Chinese glycine
industry.
Major challenges for Chinese glycine industry are showed as follows.
……
Table IV-3.1 Strengths and weaknesses of Chinese glycine industry
No. Strengths Weaknesses
1 xxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxx

Chapter Five Industry structure and competitive analysis
Table V-2.1.1 Major glyphosate producers adopting AEA pathway in China, 2009
No. Company Abbreviation
Status
2010
Capacity
2009, t/a
Output
2008,
tonne
Output
2009,
tonne
1 Zhejiang Wynca Chemical Group Co., Ltd. Zhejiang Wynca active 80,000 xxxx xxxx
2 xxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx active xxxx xxxx xxxx
3 Nantong Jiangshan Agrochemical & Chemical Co., Ltd.* Nantong Jiangshan active xxxx xxxx xxxx
10 xxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx active 10,000 xxxx xxxx
20 xxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx idle xxxx xxxx xxxx
Others xxxx xxxx xxxx
Total xxxx xxxx xxxx
Table V-2.1.3 Main glycine producers and glycine consumers in China, 2009
No. Glycine producers Glycine consumers
1 Hebei Donghua Zhejiang Wynca, xxxxxxxxxxxxxxxxxxxxxxxxxxx
2 xxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxx

V-3 Industry concentration of glycine materials
Table V-3.1.1 Main urotropine producers in China, 2009
No. Company Location Capacity, t/a
1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx xxxxxxx
5 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx 20,000
8 Jinan Xiangrui Chemical Co., Ltd. Shandong xxxxxxx
9 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Shandong xxxxxxx
11 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxx xxxxxxx
Sub-total xxxxxxxxx
National total xxxxxxxxx
Percentage xxxxxxxxx
V-4 Industry concentration of glycine companies
Table V-4.1 Industrial concentration of glycine in China
No. Item Value
1 Top one concentration ratio XXXXXXXX
2 Top five concentration ratio XXXXXXXX
3 Top ten concentration ratio XXXXXXXX
4 HHI XXXXXXXX

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