Hubei Xingfa Group, one of China’s largest ingredient manufacturers, confirmed that it will expand its current MSM production capacity to 2,000 metric tons per year and upgrade its current MSM facility to be GMP compliant starting in the fourth quarter of 2014. This will make Xingfa the number-one MSM supplier; GWI, a leading U.S. ingredient distributor, will be its main distributor in the United States.
Through this expansion, Xingfa plans to establish its market position with one decisive competitive advantage: vertical integration—controlling the supply of the MSM raw material. According to current market information, most MSM manufacturers receive their raw materials from Xingfa.
“We have great expectations with this expansion,” says Tom Zhao, president of Xingfa USA. “The global demand of MSM is growing significantly, especially in the United States. The current supply is not consistent, which we are going to change with this strategic move. Continuous supply will be guaranteed through our direct access to the raw material.”
GWI has been a long-standing MSM partner with Xingfa. “We are excited to witness Xingfa expanding their MSM production. I have personally known Hubei Xingfa for over a decade and highly value the strategic partnership with them,” says Jim Schultz, CEO and founder of GWI. “We have over 700 MSM customers nationwide and we want to guarantee the consistent supply in terms of quality, quantity, and pricing.”
As “The Ingredients Superstore,” GWI also carries other popular joint health products such as glucosamine, chondroitin, sodium hyaluronate and more. With over 200 stocked ingredients, paired with its popular supply chain solutions, GWI caters to more than 2,000 satisfied customers nationwide.