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Chinese Citric Acid Manufacturers Face Shakeout

This article was originally published in PharmAsia News

Executive Summary

DSM's Wuxi citric acid plant recently stopped production. Industry insiders think the shutdown has little impact on other local citric acid manufacturers and the business due to the company's small share in the China market. However, some express concern that the move indicates weaker demand for the product. Furthermore, stricter environmental standards implemented by the government, coupled with a long-term output surge and recent raw materials price hike, are putting more pressure on the highly polluting industry. Analysts observe that small, low-productivity enterprises which do not meet the environmental protection standards will inevitably be eliminated. To survive the shakeout, the industry looks set for resource consolidation to achieve significance of scale. (Click here for more - Chinese Language)
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