Citric acid anhydrous /monohydrate - Lezon Consulting · Sugar consumption (as per ton citric acid...

Shanghai Lezon Consulting Co., Ltd

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Citric acid anhydrous

/monohydrate

1 Shanghai Lezon Consulting Co., Ltd www.lezonsourcing.com

ABSTRACT

Citric acid is a weak organic acid, citric acid anhydrous has the chemical formula C6H8O7, preferred IUPAC name:

2-Hydroxypropane-1,2,3-tricarboxylic acid, CAS Number: 77-92-9 and citric acid monohydrate has the chemical

formula C6H8O7.H2O, CAS Number: 5949-29-1. It is used widely as an acidifier, as a flavoring and chelating agent.

Here is no substantial difference between citric acid anhydrous (CAA) and citric acid monohydrate (CAM), just CAM

has the crystallization water which can be dissolved without any difference from normal water.

The production capacity of citric acid is about 2.7 million tons over the world and actual output is about 2 million tons.

Chinese manufacturers have about 1.7 million tons capacity and 1.16 million tons actual output, occupied 63% of

capacity and 58% actual output. In recent three years, China exported 900,000 tons to 1 million tons citric acid

annually.

The total capacity of citric acid production in China is about 1.7 million tons in the year 2016 and actual output is

about 1.16 million tons. The citric acid manufacturers concentrated in Shandong province, Jiangsu province and Anhui

province, the Shandong manufacturers have 1.14 million tons capacity. The total demand is 1.23 million tons,

domestic market is about 250,000 tons and export market is 980,000 tons. In Chinese market, the biggest application

is beverage, consumed about 120,000 tons and the second largest industry is food, consumed 48,500 tons, following

detergent and chemical industries. The consumption in globally market is similar as Chinese market.

Contents

Brief introduction of citric acid to 4

Overview of citric acid production and consumption globally and in China Page 4 to 5

Supplier evaluation (Five suppliers) Page 6 to 17

Supplier relationship management Page 18


Brief introduction of Citric acid

Citric acid is a weak organic acid, citric acid anhydrous has the chemical formula C6H8O7, preferred IUPAC name:

2-Hydroxypropane-1,2,3-tricarboxylic acid, CAS Number: 77-92-9 and citric acid monohydrate has the chemical

formula C6H8O7.H2O, CAS Number: 5949-29-1. It is used widely as an acidifier, as a flavoring and chelating agent.

Here is no substantial difference between citric acid anhydrous (CAA) and citric acid monohydrate (CAM), just CAM

has the crystallization water which can be dissolved without any difference from normal water. The dosage of CAA or

CAM is quite small, so the crystallization water will not affect the character of end products. During the production, if

crystallization temperature is above 36.6℃ CAA will be produced, conversely, will get CAM, when CAM was heated to

153℃, it will lose the crystallization water and turn to CAA.

Specification for citric acid anhydrous, (main standards)

Item Unit BP 2013 USP 35 FCC 7 E 330 GB1886.235-2016

Characters / White Crystalline Powders, Colorless Crystals or Granules. Odorless, has a strongly

acid taste.

Identification / Pass Test

Color & Clarity of

Solution / Pass Test Pass Test / / /

Assay % 99.5～100.5 99.5～100.5 99.5～100.5 ≥99.5 99.5～100.5

Water % ≤1.0 ≤1.0 ≤0.5 ≤0.5 ≤0.5

Readily Carbonisable

Substances /

Not Darker

than Standard

Not Darker

than Standard A≤0.52，T≥30%

Not Darker than

Standard ≤1.0

Sulphated Ash % ≤0.1 ≤0.1 ≤0.05 ≤0.05 ≤0.05

Chloride ppm / / / / ≤50

Sulphate ppm ≤150 ≤150 / / ≤100

Oxalate ppm ≤360 ≤360 Pass Test ≤100 ≤100

Calcium ppm / / / / ≤200

Arsenic ppm / / / ≤1.0 ≤1.0

Lead ppm / / ≤0.5 ≤0.5 ≤0.5

Aluminum ppm ≤0.2 ≤0.2 / / /

Mercury ppm / / / ≤1 /

Heavy Metals ppm / ≤10 / / /

Bacterial Endotoxins IU/mg ＜0.5 Pass Test / / /

Tridodecylamine mg/kg / / ≤0.1 / /

Packaging：

Plastic woven bag, 25kg net composite paper-plastic bags or 3-ply Kraft paper bags with PE liner,

500kg or 1000kg net PP woven Jumbo bags

Storage：Keep in a light-proof, well-closed, dry and cool place

Main Usage：Citric Acid is mainly used as acidulant, flavoring agent, preservative and antistaling agent in food and

beverage industry, it is also used as antioxidant, plasticizer and detergent in chemical, cosmetics and cleaning industry.


Specification for citric acid monohydrate, (main standards)

Item Unit BP2013 USP 35 FCC 7 E 330 GB1886.235-2016

Characters / White Crystalline Powders, Colorless Crystals or Granules. Odorless, has a strongly

acid taste.

Identification / Pass Test

Color & Clarity of

Solution / Pass Test Pass Test / / /

Assay % 99.5～100.5 99.5～100.5 99.5～

100.5

≥99.5% 99.5～100.5

Water % 7.5～9.0 7.5～9.0 ≤8.8 ≤8.8 7.5～9.0

Readily Carbonisable

Substances /

Not Darker

than Standard

Not Darker

than

Standard

A≤0.52，

T≥30%

Not Darker

than Standard ≤1.0

Sulphated Ash % ≤0.1 ≤0.1 ≤0.05 ≤0.05 ≤0.05

Chloride ppm / / / / ≤50

Sulphate ppm ≤150 ≤150 / / ≤150

Oxalate ppm ≤360 ≤360 Pass Test ≤100 ≤100

Calcium ppm / / / / ≤200

Arsenic ppm / / / ≤1 ≤1.0

Lead ppm / / ≤0.5 ≤0.5 ≤0.5

Aluminum ppm ≤0.2 ≤0.2 / / /

Mercury ppm / / / ≤1 /

Heavy Metals ppm ≤10 / / / /

Bacterial Endotoxins IU/mg ＜0.5 Pass Test / / /

Production process

Fermentation

Raw material

Strains

Neutralization Filtration

(crude citric

Crude calcium citrate

Filtration

Ion-exchange

Decolorization

Concentration

Filtration Acidolysis/Washing

Citric acid monohydrate

Citric acid anhydrous

Crystallization


According to the technology difference and production condition

Acidity production ratio: 12% to 15%

Fermentation time: 50 to 65 hours

Yield: 77.5 to 90 %

Sugar consumption (as per ton citric acid anhydrous): 1.8 to 2.0 tons

Water: 16 to 40 tons

Steam: 4.3 to 8 tons

Electric power: 950 to 1200kw

Overview of global citric acid production

The production capacity of citric acid is about 2.7 million tons over the world and actual output is about 2 million tons.

Chinese manufacturers have about 1.7 million tons capacity and 1.16 million tons actual output, occupied 63% of

capacity and 58% actual output. In recent three years, China exported 900,000 tons to 1 million tons citric acid

annually.

Main manufacturers except for China manufacturers,

Archer Daniels Midland Company, capacity: 120,000 tons

Cargill, Incorporated, capacity: 90,000 tons

Tate & Lyle Ingredients Americas LLC, capacity: 140,000 tons

Royal DSM N.V.,, capacity: 100,000 tons

Jungbunzlauer, capacity: 240,000 tons

Niran (Thailand) Co., Ltd: 120,000 tons

Sunshine Biotech International Co., Ltd: 800,000 tons

Antidumping and countervailing duties

Many nations impose the antidumping and countervailing duties on citric acid from China to protect the

manufacturers in their own country.

Market Antidumping duty Anti-subsidy duty

US RZBC 0%, Jinhe 6.61%, others 94% to

156%

Jinhe 30.93%,

others 3.6% to 118.9%

EU Minimum import price (exclude Weifang

Ensign and TTCA), 15.3% to 42.7% N/A

India USD367.59/MT N/A

Ukraine Ensign, TTCA 0%, COFCO 8.15%,

others, 24.74% N/A

Thailand 57.79% N/A

Brazil USD835 to USD861/MT N/A

Colombia Minimum import price N/A

Eurasian Economic Commission Ensign 4.2%, TTCA 6.82%, other 16.97% N/A


Overview of citric acid production in China

The total capacity of citric acid production in China is about 1.7 million tons in the year 2016 and actual output is

about 1.16 million tons. The citric acid manufacturers concentrated in Shandong province, Jiangsu province and Anhui

province, the Shandong manufacturers have 1.14 million tons capacity. The total demand is 1.23 million tons,

domestic market is about 250,000 tons and export market is 980,000 tons. In Chinese market, the biggest application

is beverage, consumed about 120,000 tons and the second largest industry is food, consumed 48,500 tons, following

detergent and chemical industries. The consumption in globally market is similar as Chinese market.

Main Chinese citric acid manufacturers

Company Capacity Technology Location

Weifang Ensign Industry Co., Ltd 500,000 Fermentation Shandong

TTCA Co., Ltd, 300,000 Fermentation Shandong

RZBC GROUP CO., LTD 250,000 Fermentation Shandong

COFCO Biochemical (AnHui) Co., Ltd 220,000 Fermentation Anhui

Yixing-union Biochemical Co., Ltd., 200,000 Fermentation Jiangsu

Laiwu Taihe Biochemistry Co., Ltd. 120,000 Fermentation Shandong

Capacity of Chinese citric acid manufacturers

Consumption of Citric acid

29%

18%15%

13%

12%

7% 6%

Capacity of Chinese Citric acid manufacturers

Weifang Ensign

TTCA

RZBC Group

COFCO

Yixing Union

Laiwu Taihe

Other manufacturers

48%

20%

19%

9%

3% 1%

Consumption of Citric acid

Beverage

Food

Detergent

Chemicals

Pharmaceutical

Others


Supplier 1 Weifang Ensign Industry Co., Ltd

Overview:

Weifang Ensign Industry Co., Ltd is a large enterprise which specializes in the production of Citric Acid Series products

and Alcohol Series products. Ensign is top 10 Enterprises of Fermentation Industry in China Light Industries, has

already passed system certifications of ISO9001, ISO14001, ISO22000, OHSAS18001, BRC, HACCP, GMP, KOSHER,

HALAL, FAMI-QS, and Non-GMO IP.

The Citric Acid Series products include Citric Acid Monohydrate, Citric Acid Anhydrous, Sodium Citrates and others

citrates and the products are exported to more than 100 countries and regions. Alcohol Series products include

Special Grade Alcohol, Superior Grade Alcohol. Revolving around Citric Acid and Alcohol industry chain, the company

has built some circular economy projects such as 100,000KW Thermal Power Plant, IC Tower, DDGS Feed, Reclaimed

Water Reuse, Waste Heat Power Generation, Carbon Dioxide Recovery, Granular Sludge and Citric Acid Waste Gypsum

Comprehensive Utilization.

Ensign Holding Group owns another subsidiary, Ensign Heavy Industries Co., Ltd., subsidiary, which is a modern heavy

equipment manufacturing company, specialized in construction machineries

Company basic information

Basic Information

Production site Changsheng Street, Changle, Weifang, Shandong

The year of establish 1997

Number of Employees 3000

Turnover in last year 488 million USD

Ownership Private corporation

Capacity of citric acid/sodium citrate 500,000

Actual output of last year 350,000

Other main products Alcohol, Sodium Citrates

Export ratio 60% to 70%

Website http://www.ensignworld.com/

Commercial factors

International sales team size Big

Payment term Negotiable

INCOTERM CFR, FOB, DDU

Certifications KOSHER, HALAL, BRC, FAMI-QS, IP

Nearest sea port Qingdao, 190km

Communication skill Excellent

E-mail: [email protected]

Technology factors

Production process Fermentation

Quality management system ISO9001, ISO22000/FSSC22000

Environmental management system ISO14001, OHSAS18001

Raw material source Corn, domestic and imported

R&D

More than 100 full-time R&D and quality inspection

employees leading by an Academician of Engineering.

Energy source Own electric power station

EHS accidents in recent two years No official announcement


The locations of Weifang Ensign and nearest main port

SWOT analysis

Strengths Weaknesses

1. Largest capacity, excellent quality management and

EHS Management system.

1. Not quite active for small orders and certifications

required by small markets

2. Have almost all the necessary certificates for

international market.

2. Environmental protection pressure is quite high.

3. Big international marketing team, enrich experience

and knowledge for international market

3. The price is higher than other manufacturers some

times.

4. Own electric power station, steam and power cost

can be reduced

4. The working capital is tight as Ensign holding group

invested to engineering industry

Opportunities Threats

1. Special offer for long term and large volume

customers

1. Environmental protection measures perhaps affect

the production.

2. Brand value is higher than other manufacturers,

might can sell higher price in the market

2. Might small volume clients cannot receive the

quotation.

3. Ensign has a very strong R&D center, perhaps be

able to develop new technology.

3. Working capital problem caused the company ask

for more strict payment term.

4. Antidumping duty in several markets

Summary:

1. Weifang Ensign has the largest capacity of citric acid and 60 to 70% of her citric acid is sold to international market.

Ensign has most certificates for international market and has already sold the cargo to more than 100 countries.

Ensign is a very important supplier for large volume buyers.

2. As the largest manufacturer, Weifang Ensign is not quite active and positive for small volume buyers, the price and

payment term is not quite competitive for small clients, but I suggest keep in touch with Ensign.

3. Ensign faces very high pressure for environmental protection, I heard the plant was shut down by the local

government some time in 2016, but did not get official confirmation.

Weifang Ensign

Qingdao port


Supplier 2 TTCA Co., Ltd,

Overview:

TTCA Co., Ltd, which was founded in 1986, located in the beautiful Anqiu City within of Shandong Peninsula with a total asset of

RMB 2 billion. TTCA factory covers an area of 600,000 square meters and owns garden-like plants, high qualified and trained

staffs and advanced production facilities

The modern analysis lab is built according to the international standards, which is equipped with modern test facilities such as

the Moisture Test Titrator, Spectrometer, Bacterial Endotoxin Test Machine and Atom Absorption Test Machines etc.

The company has passed the legalization of ISO, HACCP and KOSHER, HALAL, IP, BRC, FAMI - QS, GMP etc. and the quality

of products can conform to standards of BP, FCC, USP, EP, JSFA, GB, etc.

Affiliated companies: Shandong Qufeng food tech Co., ltd. , Anqiu Tianyu Power station.


Basic Information

Production site No.27 Xin An Nan Road, Anqiu, Shandong







Other main products Sodium Citrates


Website http://www.ttca.com.cn

Commercial factors


Payment term Negotiable, OA payment available


Certifications

KOSHER, HALAL, BRC, FAMI-QS, IP, other certificates for

small countries

Nearest sea port Qingdao, 160km


E-mail: [email protected] / [email protected]/ [email protected]

Technology factors


Quality management system ISO9001, ISO22000/FSSC22000



R&D Good facilities, medium size R&D team

Energy source Affiliated company, electric power station

EHS accidents in recent two years No


The locations of TTCA and nearest main port

SWOT analysis


1. Large capacity, excellent quality management and


1. Antidumping duty in main markets


international market. Able to apply for certification for

small countries

2. Face the environmental protection pressure.



3. R&D ability is weaker than Ensign and RZBC

4. Affiliated electric power station, steam and power

cost can be reduced


1. Special offer for long term and large volume

customers


the production.

2.Payment term is negotiable, Open account payment

is available

2. If antidumping duty retio reduced, perhaps the

supply to other markets will be affected

3. The price is competitive and active to offer to small

buyers

Summary:

1. TTCA is the second largest manufacturer for citric acid in the world, about 65 to 75% of her citric acid is sold to

international market. TTCA has excellent quality management, EHS management, R&D and quality control

abilities.

2. TTCA is a very good supplier for small or medium volume buyers. TTCA can provide excellent services for

international procurement, such as open account payment term, international transport to inland points, etc.

3. The environmental protection will affect all the citric acid manufacturers in China, I have not heard any negative

news of TTCA, but suggest keeping attention to this.

TTCA

Qingdao port


Supplier 3 RZBC GROUP CO., LTD

Overview:

RZBC GROUP CO., LTD. is located in Rizhao City of Shandong Province. Our company is established in 1993. The current

production capacity is 250 thousand tons per year, planned to enlarge to 400 thousand tons. RZBC insists on standard

management and pursues improving management continuously. RZBC firstly gets the certification of ISO9001,

ISO14001, GMP pharmaceutical, BRC, OU-KOSHER, HALAL, ISO22000, IP compliance, FAMI-QS etc, in citric acid field of

China, which ensure the safety and high quality of the products and service. Products are popular in more than 100

countries and regions including the EU, the United States, Japan, the Middle East, and Africa and so on. RZBC

establishes long-term cooperation with Coca Cola, Pepsi Cola, Mondelez, Nestle, Danone, GSK and many other world

famous food and drug enterprises.

RZBC insists on taking technology innovation and focuses on citric acid manufacturing. We firstly established National

Accredited Lab, National Technology Development Center, the national analysis and testing center of citric acid

industry. RZBC owns a number of leading core technology in citric acid field. We realized large-scaled, automatic and

good-quality production by using production equipment and manufacture process which are leading in the world to

ensure the reliable quality.


Basic Information

Production site Block A NO.66 Lvzhou South Road, Rizhao, Shandong







Other main products Sodium Citrates

Export ratio Above 80%

Website http:// www.rzbc.com/

Commercial factors




Certifications KOSHER, HALAL, BRC, FAMI-QS, FDA registration, IP

Nearest sea port Rizhao port 40km, Qingdao port 160km



Technology factors


Quality management system ISO9001, ISO22000/FSSC22000/GMP (food)



R&D

More than 100 full-time R&D and quality inspection

employees leading by an Academician of Engineering.

Energy source State and local power stations



The locations of RZBC GROU and nearest main port

SWOT analysis


1. Large capacity, excellent quality management and


1. Need to purchase electric power and steam


international market. For US market, own FDA

registration and GMP certificate

2. Be able to enter US market, might will be not quite

active to offer to other markets, especially small

clients



4. Antidumping duty is very low for US Market, the

only possible supplier for US market.


1. Easy to pass the audit of huge corporations, and be

familiar with international standards.


the production.

2. Special low antidumping duty for US market, the

only one Chinese manufacturer be able to enter US

market.

2. As RZBC has lots of big clients, perhaps the small

orders will be given up when the market is tight

3. Perhaps the company will enlarge the capacity to

400,000 tons to meet the market demand

Summary:

1. RZBC is a very proper supplier for huge corporations, she has already supplied to Coca Cola, Pepsi Cola, Mondelez,

Nestle, Danone, GSK. Her quality management and EHS management system is good enough to pass the audit,

and RZBC has the GMP (for food) and FDA registration. The lowest antidumping duty radio for US market makes

her to become the only one supplier for US market.

2. As US market is too good, RZBC does not care other markets very much. Small international buyers are not easy to

get the quotation from RZBC.

RZBC

Qingdao port

Rizhao port


Supplier 4 COFCO Biochemical (AnHui) Co., Ltd (previous BBCA)

Overview:

COFCO Biochemical (AnHui) Co., Ltd.,(hereinafter called COFCO Biochemical) is one of the leading agricultural

products processing enterprise in China, which is established on August, 28th, 1998, then I.P.O. in Shenzhen Stock

Exchange (stock code: 000930) on July, 12th, 1999. It locates in Bengbu, the so-called “Pearl City” along Huai River. Its

major production base includes Citric acid, amino acid, fuel ethanol production lines and thermal power plant in

Bengbu city, other bases outside Bengbu includes MaAnShan Biochemical, SuZhou Biochemical, COFCO Edible Oil,

DangShan Pear Industry and a state level R&D center.

COFCO subsidiary company (Starry Hong Kong Limited) holds the relative majority share (15.76%) of COFCO

Biochemical. With the proprietary technology of "low-temperature liquefaction, filtrate fermentation " and the world’s

leading equipment, COFCO Biochemical processes 3 million tons corn per year, into fuel ethanol, citric acid, L-lactic

acid, ethylene oxide, amino acids, fats, fruit juice, gluten meal, fiber feed and other products.


Basic Information

Production site NO.1 Zhongliang Road, Bengbu, Anhui,China



Turnover in last year 976 million USD (citric acid series 159million USD)

Ownership

Public company, COFCO subsidiary (Starry Hong Kong

Limited) 15.76%

Capacity of citric acid /sodium citrate 220,000 (China + Thailand)


Other main products Fuel Ethanol

Export ratio 13% for all products, citric acid 70% to 80%

Website http://www.zlahsh.com

Commercial factors



INCOTERM CFR, FOB,

Certifications HALAL, HACCP, IP

Nearest sea port Shanghai port 500km

Communication skill good

E-mail: +86-552-4928151

Technology factors


Quality management system ISO9001,



R&D

Total 552 employee, investment 7million USD annually,

(total figures not only for citric acid)

Energy source Own power station



The locations of COFCO Biochemical and nearest main port

SWOT analysis


1.Plant in Thailand, lower antidumping duty and closer

to South East Asia market

1. The Chinese plant is too far away from sea port, so

inland transport cost is higher than others.

2. As a public and stated holding company, it is easier

to get the support from local government

2. The capacity in China is smaller than TOP 3

manufacturers, and the company do not have plan to

enlarge the capacity in China



3. The culture of the enterprise is more like a

state-owned company than a multi-national company

4. Own an electric power station, steam and power

cost can be reduced


1. As COFCO has a plant in Thailand, they can sell to

US and EU market

1. The EU and US market is better than other markets,

perhaps the company will not have enough products

for other markets

2. Long term and large volume clients can get special

offer

2. As citric acid is not the biggest product for the

company, and COFCO only holds 15.76% share,

perhaps the company will not be positive to invest.

Summary:

1. After COFCO group acquired BBCA Biochemical in Nov. 2006, their main expansion is construction of Thailand

plant, the main market also becomes the European market. As the antidumping duty for Thailand is very low,

(6.47 to 15.71% in US and 0% in EU), COFCO Biochemical can become a workable supplier for US and EU market.

2. The Thailand citric acid business was operated at a loss until 2017, and the actual output decreased from 212,500

tons to 167,700 tons, we cannot see any further expansion plan. It will be difficult for the clients from other

regions to get quotation.

COFCO Biochem

Shanghai port


Supplier 5 Yixing-union Biochemical Co., Ltd.

Overview:

Jiangsu Guoxin Union Energy Co.,Ltd., founded in 1986, has the subsidiaries of Jiangsu Xielian Union Thermo Electron

Group Co., Ltd., Yixing-union Biochemical Co., Ltd., After years' development, the company has formed two major

businesses: thermoelectricity and biochemical industries,

Biochemistry aspect:

Founded in 2000, it is vice chairman unit of China Fermentation Industry Association and China Minmetals Chemical

Import and Export Trade Citric Acid Branch. It is professional in manufacturing of citric acid, citrate and maize gluten

feed, with annual output of 200,000 tons of citric acid and citrate, including 100,000 tons of anhydrous citric acid,

70,000 tons of citric acid monohydrate and 30,000 tons of citrate, and 60,000 tons of maize gluten feed. Our company

has passed ISO9001 quality management system, ISO14001 environmental management system, HACCP, IP

authentication, Muslim authentication, SA8000 social responsibility, FSSC22000 food security authentication. Main

products have been exported to America, Europe, Japan and Australia, and South-east Asia.


Basic Information

Production site

NO.1 Redian Road, Economic Development Zone, Yixing

City, Jiangsu


Number of Employees 1000 only biochemical

Turnover in last year 160 million USD Only biochemical

Ownership Stated own company



Other main products Sodium Citrate


Website http://www.co-union.com

Commercial factors



INCOTERM CFR, FOB, CPT

Certifications HALAL, HACCP, FAMI-QS, HACCP, Kosher, IP

Nearest sea port Shanghai port 220km



Technology factors


Quality management system ISO9001, FSSC22000



R&D Fermentation technology lab, QA/QC lab

Energy source Own power station



The locations of Yixing-union Biochemical and nearest main port

SWOT analysis


1. Energy cost is the lowest, good quality management

and EHS management system, planned to enlarge the

capacity

1. A little far away from domestic corn market, main

relied on imported corn.


international market. Able to apply for certification for

small countries

2. Located in prosperous region, labor cost is higher

than other main manufacturers.



3. The new invested plant is located far away from sea

port, not easy to sell to international market


1. New plant in Jilin province, 150,000 tons/year first

stage.

1. When the market is tight, the company will not be

able to deliver the cargo to small clients in time

2.Payment term is negotiable, but will still ask partly

advance when the market is tight

2. The payment term will be changed if here are some

special requirement from management level

3. The price is competitive and active to offer to small

buyers. Can give special offer to long term clients.

3. If Chinese government imposed duty to imported

corn, perhaps the raw material cost will increase.

Summary:

1. Yixing Union can offer very competitive price some times, as the location is not Shandong province, environmental

protection measures perhaps affect two provinces differently, so whether big volume buyers or small volume

buyer should keep good relationship with them to avoid the supply chain problem.

2. Yixing Union used to get low antidumping duty for US market, but cannot see their products sold to US market

recent years. As the capacity problem, sometimes they cannot ship the cargo to small clients in time. The new

enlarged capacity is located in North-east of China, it is closer to corn origin but far away from sea port.

Yixing Union

Shanghai port


Supplier 6 Laiwu Taihe Biochemistry Co., Ltd

Overview:

Laiwu Taihe Biochemistry Co., Ltd. was established in May 2003, is located in the High-tech Zone of Laiwu City,

Shandong Province. The main products include citric acid monohydrate, citric acid anhydrous, sodium citrate, calcium

citrate, protein feed.

The company is located in Shandong, 100KM away from Jinan International Airport, 260KM from Qingdao port. The

Beijing-Shanghai high-speed, Dragonhead high-speed covering the whole region, TAIHE is the member of CCCMC and

China fermentation industry association, it has certificated by ISO9001, ISO14001, ISO2000, HACCP, halal, kosher, IP,

BRC, GMP. TAIHE has a good quality assurance and after-sales service system, the quality of the products in

accordance with the international standards of the EP, BP and USP.


Basic Information

Production site No.89, Changjiang Street, Laiwu, Shandong




Ownership Private company



Other main products Sodium Citrate


Website http://www.lwtaihe.cn

Commercial factors



INCOTERM CFR, FOB, CPT

Certifications HALAL, HACCP, FAMI-QS, HACCP, Kosher, IP

Nearest sea port Qingdao port 260km



Technology factors


Quality management system ISO9001, FSSC22000



R&D QA/QC lab, fermentation lab, 76 technicians

Energy source State and local power stations



The locations of Laiwu Taihe Biochemistry and nearest main port

SWOT analysis


1.The labor cost is lower than other manufacturers 1. Need to purchase electric power and steam


international market.

2. The capacity is the small, and sodium citrate ratio is

higher than other manufacturers.



3. The R&D ability is weak.


1. Taihe is eager to enter US market perhaps she can

get better antidumping duty in future.


the production.

2. The price perhaps will be lower than other main

manufacturers

2. The capacity is not big enough to supply new clients

3. Perhaps Taihe will be acquired, then she can get

more fund for development

3. The possible ownership change causes the

uncertainty of the future management.

Summary:

1. Taihe has the smallest capacity among Chinese citric acid manufacturers perhaps her capacity is similar as

COFCO’s plant in China and Sodium citrate ratio is the largest, so she do not have too much capacity of citric acid

for the market. I feel here is more chance to get a good offer of sodium citrate than citric acid.

2. Taihe has all the certificates and professional team for international market, and she is eager for US market, so we

suggest US buyers to keep a good relationship with Taihe to see whether she can get better antidumping duty.

3. Taihe has the lowest labor cost among all the Chinese citric acid manufacturers, and the possible ownership

change perhaps make her to become the second public company of Chinese citric acid manufacturers.

Laiwu Taihe

Qingdao Port


Supplier relationship management

Supplier name Region Ranking Comments

Weifang Ensign Industry

Co., Ltd

US Market Backup supplier Antidumping duty reason

EU Market Normal supplier Excluded from Min price list

Other market Key supplier

TTCA Co., Ltd,

US Market Backup supplier Antidumping duty reason

EU Market Normal supplier Excluded from Min price list


RZBC GROUP CO., LTD

US Market Key supplier 0 antidumping duty

EU Market Key supplier

Other market Normal supplier No enough capacity

COFCO Biochemical (AnHui)

Co., Ltd

US Market Important supplier Thailand plant

EU Market Key supplier Thailand plant

EEC Market Backup supplier Antidumping duty reason

Other market Normal supplier

Yixing-union Biochemical

Co., Ltd.,

US Market Normal supplier Antidumping duty reason

EU Market Key supplier

EEC Market Backup supplier Antidumping dury reason


Laiwu Taihe Biochemistry

Co., Ltd.

US Market Important supplier Antidumping duty is lower

EU Market Important supplier

Other market Normal supplier

Daily management

Key supplier Important supplier Normal supplier Backup supplier

1. Send inquiries each time,

keep good relationship. 1. Send inquiries regularly

Regular communication,

check the price level

Pay attention to the

antidumping duty.

2. Regular communication

for market situation

2. Place the order when the

price is competitive

3. Regular orders to

maintain the relationship

3. Regular communication

and good relationship

Notices:

1. The e-mail addresses of the suppliers were provided as basic information of the company, but we cannot guarantee

you will be able to receive the quotation if you send inquiries to those e-mails. Because of the language problem, sales

region workload or other reasons, the sales team will not reply the inquiries.

2. The report is designed to be an instruction for purchasing citric acid from China. It is written by a Chinese native

sourcing expert who has already engaged in the citric acid market for several years. The figure of capacity includes

sodium citrate capacity as it is difficult to separate from citric acid capacity.

3. All the figure sourced from public data base, annual reports, governmental reports ect., we hold the neutral

position for all the suppliers, and do not charge from any suppliers. But as the writer is an experienced expert, he or

she also has personal favorite suppliers, must have good experience and bad experience for those suppliers, we feel

those experience will be helpful for your business, so please only treat our comments of the suppliers as a reference.

4. Each company has her own business models, just one report will not become the solution of your business in China.

So if you need further engagement, please contact us.

Citric acid anhydrous /monohydrate - Lezon Consulting · Sugar consumption (as per ton citric acid...

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