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NEWS

Russias largest lysine plant suspends operations after missile attack, demand for Chinese lysine in Russia-White market to rise sharply

According to Russian news media, the lysine production plant Premix Plant N°1, a subsidiary of ZAO Prioskolie, was recently attacked and set on fire, damaging part of the plant.

According to local authorities reports of 1 June, nine local residents were injured in the attack on Premix Plant N°1, which is located in the town of Shebekino, 10-20km from the Russian-Ukrainian border. The city has lost power and most of the population has been evacuated to the city of Belgorod, 30 kilometres (18 miles) away.


Note: Location of ZAO Prioskolie in Google Maps, the town of Shebekino is only 10 kilometres from the closest point of the Russian-Ukrainian border

Although no employees were injured at Premix Plant N°1, almost all of them were evacuated and part of the electrical system was damaged.

According to information from the night of 7 June local time, Premix Plant N°1 has ceased operations and it will be more difficult to resume production in the near future. If the plant is severely damaged, the shutdown will last longer. Meanwhile, Premix Plant N°1 has been unable to send out goods from its existing stock in addition to the suspension of production due to the effects of the war, which has already begun to cause panic among customers in the market.

Premix Plant N°1, whose production capacity reached 80,000 tonnes/year in 2019, is the main supplier of lysine to the Russian market.

Although Belarussian National Biotechnological Corporation (BNBC) in Belarus and AminoSib in Russia both produce lysine, they are still unable to meet the entire Russian-Belarussian markets demand for lysine and there is a large shortfall, with local stocks having been sold recently.

In the recent period, the Russian market demand for Chinese lysine will increase significantly, which will affect the export demand of Chinese lysine producers, especially those who have already gained access to the Russian market.

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