Global Sweeteners Acquires Equity Enterests in HFCS from Cargill

On 30 March 2012, Global Sweeteners Holdings Limited (Global Sweeteners) announced that it has signed a sale and purchase agreement with Cargill, Incorporated (Cargill) to acquire 50% equity interest in Global Bio-chem-Cargill (Holdings) Limited (Global Bio-chem-Cargill, a subsidiary of Cargill) and 10% equity interest in GBT- Cargill High Fructose (Shanghai) Co., Ltd. (GBT- Cargill) from the latter, with a total investment of USD4.2 million. In fact, GBT- Cargill was established in 2001 as a joint venture of Global Sweeteners and Cargill and it is engaged in producing F42. Upon the completion of the acquisition, these two companies will both become wholly-owned subsidiaries of Global Sweeteners, which will help Global Sweeteners to strengthen its operational efficiency and develop its high fructose corn syrup (HFCS) business, according to CCM’s May issue of Sweeteners China News.

The following reasons are mainly responsible for Global Sweeteners’ acquisition. Firstly, it’s the increasing market demand for HFCS that drives the company to acquire equity interests in HFCS companies. HFCS has been widely used in the food and beverage industry. Especially because of the surge of sucrose price in China since 2011, many food and beverage companies have switched to other sweetening ingredients and HFCS is considered to be a good substitute for sucrose. HFCS tastes better than sucrose and its sweeteness will increase with the drop of temperature. Besides, it costs less than sucrose does as a food additive. Therefore, the strong demand for HFCS drives Global Sweeteners' acquisition. In fact, to meet the huge demand from China’s food and beverage sector for sweetener products, except its previously existing F42 (F42 and F55 are two main kinds of HFCS) production facility in Shanghai, the company had also constructed a new F55 production line with capacity of 100,000t/a in the same production site and the construction was completed in Oct. 2011, and thus Global Sweeteners’ capacity of HFCS was up to 220,000t/a.

 

Secondly, Global Sweeteners acquires HFCS companies in order to improve its product structure. In view of Global Sweeteners, the HFCS joint venture with Cargill was a success and had helped Global Sweeteners and Cargill to pioneer in China’s HFCS market. However, F42 business of Global Sweeteners didn’t perform well, and its gross profit fell from USD2.5 million in 2010 to USD 1.4 million in 2011. Besides, F55 is used more and more widely and many users are switching to F55. In consideration of this, Global Sweeteners revealed that it is considering a range of options to revamp the existing F42 facilities, in order to either complement other production lines or to adjust its product structure.

 

Thirdly, the acquisition will increase Global Sweeteners’ cash level. According to the announcement, as of 29 March 2012, Global Bio-chem Cargill and GBT- Cargill have tangible assets of about USD4.4 million with no interest-bearing bank borrowing. The total cash balances in above two company amounted to about USD14.1 million while Global Bio-chem Cargill has dividend payable to Cargill which amounts to USD2.6 million. Thus directors of Global Sweeteners believe that the agreement will not only strengthen the management flexibility over the production planning, but also increase the company’s cash level.

According to Mr. Kong, the chairman of Global Sweeteners, the termination of the joint venture agreement will free the company to develop HFCS business according to its own strategies and at its own pace. Moreover, the sales and purchase agreement will enable the company to have full control over the F42 plant, which will allow it to better utilize the production facility and strengthen the operational efficiency upon the completion of the agreement.

Source: Sweeteners China News 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1205:

Output of Chinese food additives reaches 7.62 million tonnes in 2011

Nanning Sugar encounters net profit loss in Q1 2012

Annual National Conference of Sucrose 2012 held in Yunnan

Global sugar surplus to exceed 6 million tonnes

Food additive glycyrrhiza may withdraw from Chinese market

Shandong Longlive declares long-term development strategy

High concentration may promote China's sucralose industry in 2012

Saccharin facing possible elimination in China

Mogroside may become second most popular natural sweetener

Market overview of China’s HFCS till April 2012

Opinion solicitation for national standards of three sugar alcohols ongoing

Cyclamate industry impervious to food safety incidents

Sorbitol expansion of Tongchuang Biotechnology to complete in H2 2012

Crystalline fructose to be Xiwang Sugar's key development focus

Global Sweeteners acquires equity interests in HFCS from Cargill

… …

If you are interested in CCM International’s March issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

(Guangzhou China, May 7, 2012)

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1065.html

CCM’s Stevia Sweetener Webinar Achieved Great Success

A free stevia sweetener webinar was held successfully by CCM International, a leading market research consulting company in China, at 16:30  (GMT+8, Beijing Time) on April 26, 2012. The webinar has achieved great success. 30 people registered this webinar and about 20 delegates from famous food & beverage giants, such as Tate & Lyle, Cargill, Danone, DSM, Roquette, Tampico etc. attended the event. Most of the attendees felt satisfied about the webinar and some showed great interested about the sweetener information.

Anson Chan, Speaker of this webinar, introduced the market and dynamic of China’s sweetener market, focusing on the stevia sweetener market. By analyzing the drivers and barriers, he also indicated the future development of the stevia sweetener industry in China. “As for the stevia sweetener, It is estimated develop slowly in 2012 due to unfavorable demand. On one side, the demand from oversea market may continue to be weak. On the other side, domestic demand for stevia sweeteners may develop smoothly.” Stevia sweetener is believed to have a prospect future in China.

CCM International has been systematically studying on sweeteners market in China and the world. We have very rich experience of the development of sweeteners industry. With five years' time, we have developed complete series of sweetener product, which mainly contains reports, newsletters and database of sweetener. Actually, all the market information shared during the webinar is from CCM International’s report of the fifth edition report of Production and market of Stevia Sweetener in China.

The company is now launching an Extra Discount Program of sweetener from May 1 ~ June 1, 2012. In the sweetener promotion season, each sweetener product purchase of above USD 2000 can get USD 1000 coupon. If you need further information, please contact us at econtact@cnchemicals.com.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1060.html

CCM’s Stevia Sweetener Webinar Attracts Industrial Giants to Attend

With the topic of “China Stevia Market Review and Forecast”, CCM International’s free sweetener webinar will be held at 16:30  (GMT+8, Beijing Time) on April 26, 2012. So far, the webinar has attracted leading multinational giants from food & beverage industry to attend, such as Tate & Lyle, Cargill,  Roquette, Ajinomoto, Beneo, Tampico, etc.

With the release of the 12^th  Five-Year Plan in China, Chinese sweetener market is expected to have a promising prospect, especially the hottest item – stevia sweetener. As people’s awareness is increasing, EU market of stevia sweetener may expand greatly, which provides huge opportunities for Chinese stevia sweetener producers. Investigations by CCM International show that overall price level of stevia sweeteners has decreased obviously and high purity products, such as RA97 and RA95, are becoming more and more popular with Chinese producers in 2012.

Market dynamic and market review of China’s sweetener industry, especially the boosting stevia sweetener market, as well as the future development, opportunities & challenges in this industry will all be presented in this webinar.

The webinar will take place at 16:30pm (GMT+8, Beijing Time), Apr. 26, 2012. Grasp this amazing opportunity to join CCM International’s free stevia sweetener webinar with leading industrial giants. Click the following to register:

https://cnchemical.webex.com/cnchemical/j.php?ED=185950067&RG=1&UID=1071147747&RT=MiM0NQ%3D%3D, or you can also click the register button on our webpage for getting involved.

Following information will be discussed during this webinar:

-Dynamics of China’s sweetener market

-Market review of the whole sweetener market

-Market review of stevia sweetener market

-Conclusion and forecast of stevia market

-CCM International's recommendation for stevia sweetener business

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1042.html