Methionine Business with Sumitomo Chemical
In December 2016, ITOCHU signed a basic agreement with Sumitomo Chemical Co., Ltd., to collaborate in the sales of the feed additive methionine to be produced on a new production line of Sumitomo Chemical’s Ehime Works (100,000 tons per year). After a formal agreement was concluded in March 2017, we began pre-marketing in April 2017 with a view to commence full-fledged sales collaboration once the new production line is complete. Methionine, an amino acid, is widely used to boost chicken meat and egg productivity. Adding methionine also helps to adjust the amino acid balance in feed, promoting the efficient use of amino acids within an animal’s body, which reduces the amount of nitrogen oxide in excrement—a positive environmental result. Global demand growth for methionine is forecast to be stable. ITOCHU has built up a strong relationship with the Charoen Pokphand Group, a leading consumer of methionine, and has a global sales network. Through this basic agreement, ITOCHU and Sumitomo Chemical will seek to integrate the strengths both companies have cultivated over the years in China and other Asian markets. By working together to further enhance our business in global markets, we aim to contribute to a stable supply of food throughout the world.