Chinese probiotic producer China-Biotics, Inc. plans to build a new facility dedicated to the production and sale of probiotics and related biological products for the animal feed industry in Yangling Agricultural High-tech Industries Demonstration Zone in Shanxi Province.
The Company estimates that construction of the new facility will be completed within two years.
Once operational, it will enjoy a favourable tax holiday for its first three years and half the standard tax rate in the following year.
is currently in discussions with leading domestic and multinational agricultural companies for potential partnership in this project.
Jinan Song, Chairman and CEO of China-Biotics, said that, “After nearly 3 years of thorough study and testing of probiotics strains for animal feed products and refining our proprietary fermentation technology, we have reached a new stage that allows us to commercialize our research achievements.
“The establishment of this animal feed probiotics facility, which can become the second engine to propel our long-term growth, will mark another milestone for China-Biotics as we confidently march into the vast Chinese animal feed market.”
Combating antibiotic use
"Probiotics have been identified by the National Development Reform Commission as a major solution to address the overuse of antibiotics in livestock and fish farms.
“As China continues to face a scarcity of domestically supplied enzymes and fermented animal feed, our new animal feed probiotics production base with proprietary fermentation technologies will make a timely entrance into the marketplace," Song concluded.
Agriculture Demonstration Zone
Initiated by 20 central government ministries and commissions, as well as the Shanxi Provincial Government, the Yangling Agricultural High-tech Industries Demonstration Zone was approved by the State Council in July 1997 as the only state-level agricultural high-tech industries demonstration zone in China.
Yangling serves as the hub for leading industries in plant and animal breeding, environment conservation, agricultural materials, green food and bio-pharmaceuticals.
Among over 1,000 companies that have already established facilities in the preference area, there are Fortune Global 500 companies Amorim, Cargill and Mitsui as well as Chinese soft beverage giant Huiyuan.
, Inc. manufactures biotechnology products and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements in China.
Through its wholly owned subsidiary, Shanghai Shining Biotechnology, it develops and produces live microbial nutritional supplements under the "Shining" brand.
Currently, the products are sold OTC through large distributors to pharmacies and supermarkets in Shanghai, Jiangsu, and Zhejiang province.
In February 2010, China-Biotics began its commercial production in China's largest probiotics production facility to meet growing demand in China.