AECI’s biotechnology research gives rise to two new=20 chemical projects, reports Karen Harverson
ANGLO American Industrial Corporation (Amic) subsidiary=20 AECI may soon be involved in projects worth more than=20 R700-million which, with its R300-million lysine=20 project already in progress, have the potential to add=20 about R500-million a year to the company’s R5,5-billion=20
All three ventures — the lysine and the proposed=20 citric acid and pencillin projects — are based on=20 AECI’s core aerobic fermentation technology developed=20 by its seven-year-old biotechnology research thrust.
Commissioning of the Umbogintwini-based, 11 000-ton=20 capacity lysine plant takes place this month. =
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Lysine is an essential amino acid used mainly in pig=20 and poultry feeds aimed at maximising growth of the=20 animal at minimum feed input. It also reduces=20 nitrogenous effluent, a major problem for intensely=20 populated countries, says Dr Peter Gubb, general=20 manager of the biotechnology business unit.
The global market, of which AECI hopes to capture four=20 to five percent, is about 200 000 tons a year. World=20 demand for lysine is increasing particularly in=20 countries like Holland,Belgium and Germany which are=20 intensive poultry and pig rearers. =20
Three quarters of the plant’s production is destined=20 for export and the company has an agreement in=20 principle with German chemical and vitamins company=20 BASF to distribute the product internationally.=20 Locally, AECI has signed its subsidiary Kynoch Feeds as=20 distributor and aims to bid aggressively for a large=20 share of the 3 000-ton domestic market.=20
With no import duty on lysine, the company will sell at=20 global prices which range from R8 to R10 per kilogram.
A decision to double or even treble capacity, solely=20 for export, will be taken once the technology has=20 proved successful. This should take a year’s full=20 production to determine.
Another AECI project, still to be given the go-ahead,=20 involves the development of the southern hemisphere’s=20 first penicillin plant at a cost of R400-million, with=20 a capacity of 1 000 tons of base penicillins.=20
The world market for base penicillins, from which other=20 synthetic penicillins are derived, is about 30 000 tons=20 a year, at a cost of about R100 per kilogram. The price=20 increases threefold when these base products are=20 formulated further.
‘Base penicillins such as Penicillin V are the most=20 cost-effective, primary health care antibiotics and=20 this project is in line with the Reconstruction and=20 Development Programme’s goals for primary health care,”=20 says Gubb.
The feasibility study, completed last year with=20 British-based Smith-Kline Beecham, proved the project’s=20 viability. “However, because it involves a substantial=20 entry into a mature business, we plan to buy=20 established technology rather than develop our own and=20 are seeking a partnership to supply either the=20 technology or market to shorten the development=20 pipeline,” says Gubb.
The penicillin project would require many technicians=20 to operate the plant.=20
“The cost of employing a technician locally in dollar=20 terms is very competitive compared to European/American=20 technicians. We also have the fermentation technology,=20 competitively priced raw materials, which include=20 sugar, power and protein, as well as access to the vast=20 African market estimated at 450 tons to 500 tons a=20
AECI’s third project — another first for Africa — is=20 an export-oriented citric acid plant, worth R200- million. It will have a capacity of at least 25 000=20 tons a year.
The world market for citric acid is 600 000 to 700 000=20 tons a year while the local market imports about 4 000=20 tons a year. It sells at about R6 per kilogram.
Citric acid supplies the tart flavour in many beverages=20 and is also used as a food flavourant and anti-oxidant=20
“We envisage siting the citric acid plant adjacent to=20 the lysine plant to benefit from the existing=20 infrastructure such as the sugar/syrup loading=20 facilities, road and rail links and workshops,” says=20
The technology involves a fermentation component as=20 well as the recovery of the citric acid. AECI will buy=20 established fermentation technology, but it will use=20 its own technology for citric acid recovery.
A provisional patent on the process has been filed with=20 final development work nearing completion.
“The main issue still to be resolved is to ensure that=20 we can market it internationally,” says Gubb, adding=20 that all three ventures are new territory for AECI.
He says AECI will be ready to present an investment=20 proposal for the citric acid plant by the end of 1996.
Still some way down the line, are projects to develop=20 bulk drugs for tubercolosis (TB) as well as a second- generation amino acid, called Threonine, for the animal=20 feeds market.=20
“We’re also investigating the development of=20 biodegradable pesticides from an organism called=20 Bacillus Thuringensis (Bt). The results are promising=20 although the project is still two to three years away,”=20 says Gubb.