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China-Biotics Receives Approval to Build Manufacturing Facility

Posted on: Monday, 3 December 2007, 12:00 CST

China-Biotics has received government approval to begin construction on a proposed 150-metric-ton-per-year manufacturing facility in order to meet expanding demand for probiotics in the bulk additive market.

China-Biotics plans to begin construction in early December on the new manufacturing facility in Shanghai. Construction of the new plant is projected to cost $18 million, which will be funded from existing cash and operating cash flow.

The new facility will expand production capacity from the company's current level of nine metric tons per year. When completed during the 2009 fiscal year, the company believes the new plant will be the only large-scale probiotics plant in China that supplies the domestic bulk additive market.

Jinan Song, chairman and CEO of China-Biotics, said: "This marks a crucial milestone in the success of our bulk additives strategy, and will create the foundation for a successful expansion in this growing market. Customers are selecting China-Biotics because of our industry-leading shelf life versus the domestic alternatives and our lower price points when compared to the imports. When completed, our new plant will allow us to meet the rapidly increasing need."

Source: Datamonitor

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