# Sumitomo Chemical and ITOCHU Announce Basic Agreement to Collaborate on Distribution of Methionine | Business & Products | SUMITOMO CHEMICAL

> Sumitomo Chemical and ITOCHU reached a basic agreement to discuss distributing methionine from a new production line at Sumitomo's Ehime Works, which will add about 100,000 metric tons per year. The plan includes a possible joint venture to support sales, with part of the volume handled by ITOCHU. ITOCHU has ties to CP Group, one of Asia's largest methionine buyers.

- Date: 2016-11-30 · published 2016-11-30T12:00:00.000Z
- Category: trade · region Japan · magnitude low
- Page: https://feedsoft.ai/events/74167-sumitomo-chemical-and-itochu-announce-basic-agreement-to-collaborate-on
- Commodities: [Methionine](https://feedsoft.ai/c/METH.md)

## Why it matters

New methionine capacity of this size adds to global supply and could pressure methionine prices. Secured distribution through a large trading house and a major buyer would help the new supply reach feed markets.

## Read by commodity

- METH: bearish ▼

## Sources

- sumitomo-chem.co.jp: https://www.sumitomo-chem.co.jp/english/news/detail/20161130.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.