BioKyowa Inc. planning multimillion dollar expansion to boost production of amino acids

In a period of economic uncertainty, there is one commodity that continues to drive production and add American jobs: amino acids. BioKyowa Inc. of Cape Girardeau is on the brink of a multimillion dollar expansion to boost its production of amino acids for the food and pharmaceutical industries.

BioKyowa, which opened its Cape Girardeau plant in 1984, initially focused its production on amino acids for animal feed. Over the past 10 years, the company has transitioned to creating higher-margin amino acids for human use in hospital IVs, health supplements and even medications to treat erectile dysfunction.

The plant produces thousands of metric tons of amino acids each year, according to a December 2010 interview with company CEO and Japan native Toshihiko Hirao. The main raw material, corn syrup, arrives at the plant by the rail car; workers then heat and ferment the corn syrup, extract the amino acids and ultimately produce a white powder that companies buy and refine for various uses. According to Hirao, it's cheaper to produce amino acids in the U.S. because of lower costs for raw materials and electricity. About a third of BioKyowa's product remains in the U.S., two-thirds is shipped back to Asia and a small percentage goes to Europe.

"We have seen very strong growth in the past three years in our amino acids that are sold worldwide into the food and pharmaceutical sectors," says BioKyowa plant manager Joel Melka. "The growing middle class in developing countries is what is driving the market. Demand has grown in the past three years to exceed our capacity. We need the expansion to meet existing and future increased demands."

Melka says the actual expansion plans are confidential, but the company anticipates creating more jobs in the next few years, in addition to the 30 jobs that were already added in the past three years.

"Our future looks very solid as we invest in expansion of our physical capacity and our human resources," says Melka. "Our products, amino acids, are commonly called the building blocks of life. There are no substitutes for these products and as the demand for them is going up we have to make investments to satisfy the market's needs."