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BASF to close lysine plant

April 9, 2007 | A version of this story appeared in Volume 85, Issue 15

BASF will stop producing lysine, an amino acid used in animal feed that the company makes at a 100,000-metric-ton-per-year facility in Gunsan, South Korea. In 1998, BASF bought the Gunsan plant, based on an innovative fermentation process using sugar and molasses, from South Korea's Daesang for $600 million. BASF says the business has become unattractive owing to wild fluctuations in the price of sugar, the high cost of energy and labor, and the rising value of the South Korean currency.

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