Mainland's largest glutamic acid producer is confident it can maintain profit margins despite soaring corn prices
Fufeng Group, China's largest glutamic acid producer, faces the challenge of maintaining its profit margins in light of soaring prices of corn, which accounts for 50 per cent of its production costs.
The group's annual glutamic acid production capacity now stands at 280,000 tonnes following the opening last month of the first phase of its production plant in Hohhot.
The 658,235 square metre facility has an annual production capacity of 120,000 tonnes.
Fufeng Group also has plants in Shandong and Shaanxi.
Glutamic acid, which is made from starch, is a key ingredient in food additives such as monosodium glutamate. Fufeng controls 20 per cent of the mainland market for the product.