Benchmarking of Lactic Acid and Polylactic Acid in China

The report is an extension of the report named Production and Market of Lactic Acid in China, focusing on benchmarking of below enterprises:

Five lactic acid manufacturers:
- Henan Jindan Lactic Acid Technology Co., Ltd.
- Anhui BBCA & Galactic Lactic Acid Co., Ltd.
- Ningxia Hypow Biotechnology Co., Ltd.
- Sinolac (Huludao) Biotech Co., Ltd.
- Jiangsu Senda Biological Engineering Co., Ltd.

Two polylactic acid manufacturers:
- Zhejiang Hisun Biomaterials Co., Ltd.
- Nantong Jiuding Biological Engineering Co., Ltd.

China has a long history of lactic acid production. It has started researches on it since 1930s. China’s demand for high-quality L-lactic acid has been on the rise in recent years, owing to the side effects of DL-lactic acid, its rival product, on human body and the extending application fields of lactic acid. At present, most of lactic acid manufacturers can produce L-lactic acid, ensuring its supply for production of one of its downstream products - polylactic acid.

At present, high price of polylactic acid has restricted its consumption in China. Despite the potential big market, the polylactic acid manufacturers and some enterprises that want to produce polylactic acid are still holding the wait-and-see attitudes, and there are only a few polylactic acid manufacturers in China. The two manufacturers mentioned above are the leading ones.

Through deep research, CCM figures out answers to following questions in the report.
- Production situation of above manufacturers.
- Engineering makers of above manufacturers.
- Major materials for both L-lactic acid and polylactic acid production;
- Ex-factory prices of both L-lactic acid or polylactic acid;
- Production processes of both L-lactic acid and polylactic acid production;
- Production costs of both L-lactic acid and polylactic acid production

TABLE OF CONTENTS

Executive summary
Methodology

I PRODUCTION SITUATION

I-1 Capacity and output of 5 lactic acid manufacturers
I-2 Capacity and output of 2 PLA manufacturers
I-3 Raw material
  Raw material situation
  Raw material cost
I-4 Engineering maker of plant

II PRICE

Ex-factory price of lactic acid and PLA

III TECHNOLOGY

Outline of production process
Detail of membrane process

IV PRODUCTION COST

IV-1 Plant investment
IV-2 Manufacturing cost of 5 lactic acid manufacturers
  IV-2.1 Henan Jindan Lactic Acid Technology Co., Ltd.
  IV-2.2 Anhui BBCA & Galactic Lactic Acid Co., Ltd.
  IV-2.3 Ningxia Hypow Biotechnology Co., Ltd.
  IV-2.4 Sinolac (Huludao) Biotech Co., Ltd.
  IV-2.5 Jiangsu Senda Biological Engineering Co., Ltd.
IV-3 Manufacturing cost of two PLA manufacturers
  IV-3.1 Zhejiang Hisun Biomatericals Co., Ltd.
  IV-3.2 Nantong Jiuding Biological Engineering Co., Ltd.

LIST OF TABLES

Table I-1.1 Capacity and output of 5 lactic acid manufacturers, as of Mar. 2010
Table I-2.1 Capacity and output of 2 PLA manufacturers, as of Mar. 2010
Table I-3.1 Raw materials of 5 lactic acid manufacturers, as of Mar. 2010
Table I-3.2 Raw materials of 2 PLA manufacturers, as of Mar. 2010
Table I-3.3 Raw material cost of 5 lactic acid manufacturers, as of Mar. 2010
Table I-3.4 Raw material cost of 2 PLA manufacturers, as of Mar. 2010
Table I-4.1 Engineering maker situation of 5 lactic acid manufacturers
Table I-4.2 Engineering maker situation of 2 PLA manufacturers
Table II.1 Lactic acid ex-factory price of 5 manufacturers, Mar. 2010
Table II.2 PLA ex-factory price of 2 manufacturers, Mar. 2010
Table IV-1.1 Plant investment of the seven manufacturers
Table IV-2.1.1 Estimated raw material costs of heatstable grade lactic acid in Henan Jindan, Mar. 2010
Table IV-2.1.2 Estimated manufacturing cost of heatstable grade lactic acid in Henan Jindan, Mar. 2010
Table IV-2.1.3 Estimated management cost of heatstable grade lactic acid in Henan Jindan, Mar. 2010
Table IV-2.1.4 Estimated total production cost of heatstable grade lactic acid in Henan Jindan, Mar. 2010
Table IV-2.2.1 Estimated raw material costs of heatstable and pharma grade lactic acid in Anhui B&G, Mar. 2010
Table IV-2.2.2 Estimated manufacturing cost of heatstable and pharma grade lactic acid in Anhui B&G, Mar. 2010
Table IV-2.2.3 Estimated management cost of heatstable and pharma grade lactic acid in Anhui B&G, Mar. 2010
Table IV-2.2.4 Estimated total production cost of heatstable and pharma grade lactic acid in Anhui B&G, Mar. 2010
Table IV-2.3.1 Estimated raw material costs of 88% food grade lactic acid in Ningxia Hypow, Mar. 2010
Table IV-2.3.2 Estimated manufacturing cost of 88% food grade lactic acid in Ningxia Hypow, Mar. 2010
Table IV-2.3.3 Estimated management cost of 88% food grade lactic acid in Ningxia Hypow, Mar. 2010
Table IV-2.3.4 Estimated total production cost of 88% food grade lactic acid in Ningxia Hypow, Mar. 2010
Table IV-2.5.1 Estimated raw material costs of 80% food grade lactic acid in Jiangsu Senda, Mar. 2010
Table IV-2.5.2 Estimated manufacturing cost of 80% food grade lactic acid in Jiangsu Senda, Mar. 2010
Table IV-2.5.3 Estimated management cost of 80% food grade lactic acid in Jiangsu Senda, Mar. 2010
Table IV-2.5.4 Estimated total production cost of 80% food grade lactic acid in Jiangsu Senda, Mar. 2010
Table IV-3.1.1 Estimated raw material costs of PLA in Zhejiang Hisun, Mar. 2010
Table IV-3.1.2 Estimated manufacturing cost of PLA in Zhejiang Hisun, Mar. 2010
Table IV-3.1.3 Estimated management cost of PLA in Zhejiang Hisun, Mar. 2010
Table IV-3.1.4 Estimated total production cost of PLA in Zhejiang Hisun, Mar. 2010
Table IV-3.2.1 Estimated raw material costs of PLA in Nantong Jiuding, Mar. 2010
Table IV-3.2.2 Estimated manufacturing cost of PLA in Nantong Jiuding, Mar. 2010
Table IV-3.2.3 Estimated management cost of PLA in Nantong Jiuding, Mar. 2010
Table IV-3.2.4 Estimated total production cost of PLA in Nantong Jiuding, Mar. 2010

COMPANIES MENTIONED

Henan Jindan Lactic Acid Technology Co., Ltd., Anhui BBCA & Galactic Lactic Acid Co., Ltd., Ningxia Hypow Biotechnology Co., Ltd., Zhejiang Hisun Biomaterials Co., Ltd.