[E-Daily Reporter Kim Ji-woo ] Daesang(001680), which began with the MSG brand “Miwon,” is now expanding its fermentation technology into the field of pharmaceutical raw materials. Moving beyond the mass production of general-purpose amino acids—such as lysine, which is added to animal feed—the company is cultivating high-purity amino acids used in nutritional supplements, medical diets, and pharmaceuticals as a new growth engine. The turning point was the acquisition of the German amino acid specialist “AMINO GmbH” (hereinafter “AMINO”).

According to industry sources on the 18th, Daesang completed the acquisition of 100% of AMINO’s shares last March. This came approximately three months after the company announced its acquisition plan in December of last year, investing approximately 50.2 billion won. At the time, Daesang stated that it would expand its business scope into the high-value-added pharmaceutical and biotech markets based on the amino acid technology it had accumulated through its existing materials business.

Amino’s financial results have been reflected in Daesang’s consolidated financial statements starting in the second quarter of this year. According to the semi-annual report, the company recorded sales of 26.5 billion won and a net profit of 2.6 billion won since the acquisition. The factory is also operating at full capacity. The average capacity utilization rate at the Prelstedt production facility in Germany for the first half of this year was 105%. A Daesang official stated, “Production output at the Prelstedt plant in Germany for the first half of this year has already exceeded 77% of last year’s annual production output,” adding, “We plan to continue investing in production facilities.”

Founded in 1958, Amino may be an unfamiliar name to the general public, but its products are used throughout hospitals and the biotech industry. The company produces high-purity amino acids used not only in medical intravenous solutions and patient nutrition but also in cell culture media for cultivating biopharmaceuticals and as excipients in pharmaceuticals. With a research institute and production facility in Prelstedt, Germany, the company has built up expertise in amino acid purification technology and regulatory approval capabilities within Europe.

Through the acquisition of Amino, Daesang has also expanded its production and sales footprint. Amino Korea and Amino India—Amino’s existing trading subsidiaries in South Korea and India, respectively—as well as AMINO MANUFACTURING, its production subsidiary in South Africa, have been incorporated as consolidated subsidiaries of Daesang. This effectively adds a global business network to Daesang, with production in Germany and South Africa and sales in South Korea, India, and other markets.

Daesang’s decision to focus on amino acids is also driven by the limitations of its existing materials business. Daesang’s materials business consists of starch, starch sugar, and the bio business. In the bio sector, the company produces various amino acids, including MSG, lysine, arginine, and tryptophan. Among these, lysine, arginine, and tryptophan are primarily used as additives to enhance the nutritional content of animal feed and are supplied to global feed manufacturers.

The problem is that the profitability of these general-purpose amino acids fluctuates significantly depending on international market prices. Daesang’s first-half revenue from its materials business this year was 826.5 billion won, up 2.1% year-over-year, but operating profit fell 35.7% to 31.5 billion won.

The company explained that this was due to a base effect resulting from last year’s unusually high lysine prices. When the European Union (EU) imposed provisional anti-dumping duties on Chinese lysine in January of last year, lysine prices in Europe surged, and Daesang also saw increases in both its sales price and sales volume. However, global lysine prices subsequently fell as Chinese companies lowered their prices again. This once again highlighted a structure where performance is driven by oversupply from China and low-price competition.

Daesang has turned its attention to high-purity amino acids for nutritional and pharmaceutical use. Unlike commodity products, where mass production and price competition are key, pharmaceutical ingredients require high purity, strict quality control, and regulatory approval capabilities. Amino’s core business also consists of raw materials for nutritional supplements—including infant formula—and pharmaceutical ingredients.

A Daesang official stated, “We are shifting away from our existing business structure centered on general-purpose amino acids and restructuring our business portfolio to focus on high-value-added amino acids.” The official added, “We plan to transition the production of low-margin general-purpose amino acids to our existing overseas production bases and concentrate our efforts on the production of high-value-added and premium high-purity amino acids going forward.”