China news

Health food 2004
According to figures published by the China Health Care Association, the Chinese health products industry generated a total value of $6 billion in 2004.

Bioriginal braces for growth
Nutritional oils producer Bioriginal is stepping up its focus on the Asian market. The company announced that it had appointed Martin Hettema, previously at plant extracts firm Jan Dekker, to build new sales in Asia, primarily the Chinese, Japanese and Australian markets. The region currently generates about 10 per cent of the group?s turnover, but the company expects sales to increase tenfold in five years? time.

Bioriginal, previously known in Europe as VSP, derives three quarters of its sales from evening primrose, borage and flax seed oils, and already has a joint venture in the Dalian region of China to source raw materials.

Arrowroot liquor
Dingrongshan Wild Arrowroot Co Ltd has launched a new type of arrowroot-based liquor. The wild arrowroot is locally grown and has been used in traditional Chinese medicine for centuries. It is often referred to as the ?Ginseng of the South.? The liquor is marketed as a health beverage.

Kerry dedicates $25.6 million
The Kerry Group?s $25.6 million investment programme in China will include new manufacturing, technical and administrative facilities in Hangzhou in Zhejiang Province. The programme will significantly expand the company?s asset and customer base through the acquisition of Hangzhou Lanli Food Industry Co Ltd (Hangzhou, Zhejiang) and through the establishment of a new multiprocessing manufacturing facility and technical centre on a 16-acre Greenfield site in the HEDA Economic Zone. Kerry?s food ingredients and flavour technologies will be focused on the food processing and food-service sectors ? particularly in nutritional, dairy, flavoured noodle, brewing, flavoured beverage, snack and bakery market segments.

Kerry and Danisco are vying for the leading position in the global food ingredients industry. This battle is being fought in China as well. While Danisco has already erected its base in China in the Kunshan region of South Jiangsu, Kerry is now establishing itself in Hangzhou, North Zhejiang. On the map, these two regions are quite close, situated in the Yangzi River Delta.

Chr Hansen food colours
Food and beverage manufacturers in China soon will have easier access to natural food colours. Chr Hansen recently opened a food colour factory in Tianjin using Chinese raw materials. Chr Hansen is experiencing a rapid increase in food colour sales in the Chinese market. As a result, it has decided to strengthen its current presence in China by establishing a factory that mixes and manufactures food colour solutions, tailor-made for the Chinese market. Last year, Chr Hansen officially established a sales office in Beijing.

Bitter gourd liqueur
Magu Shanzhuang Winery and the food faculty of the Bayi State Farms University have jointly developed a bitter gourd liqueur. The typical feature of this liqueur is that each bottle contains an entire bitter gourd. As it is impossible to squeeze a bitter gourd into a standard liquor bottle, the gourd is grown into a bottle and only after it has reached the required stage of maturity is it cut from the tree and the bottle filled with traditional Chinese distilled liquor. Researchers claim that bitter gourd contains substances that are active against AIDS and certain malignant tumours. A number of new products enriched with bitter gourd extract have appeared on the market in recent years, including beer.

Extracts from Giract ChinaNews
ChinaNews is a bi-monthly e-publication. Qualitative and quantitative information for ChinaNews is collected regularly from local trade press and government agencies, and supplemented by visits to key trade exhibitions. For ChinaNews subscription details, contact:
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Degussa venture for L-lysine
Degussa?s Chinese affiliate Degussa China Ltd has signed a joint venture contract with Cathay Lineng Biotechnology Co Ltd (Shandong) China, to establish a company for the production of L-lysine. Degussa will be the majority shareholder of the joint venture called Degussa Cathay Biotechnology Co, with a 51 per cent stake for Degussa and a 49 per cent stake for Cathay. The joint venture will construct an L-lysine production plant at the Cathay site in Jining, Shandong province. The initial annual capacity will be 40kt of Biolys (Degussa?s L-lysine product).
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