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Sino-German Joint Venture to Produce Amino Acid
Degussa, a Germany-based special chemicals multinational, and a Chinese pharmaceuticals company will jointly finance the production of amino acid in south China.
According to an agreement signed Wednesday, Degussa and the Only-Time Pharmaceuticals Company, a private business in the Guangxi Zhuang Autonomous Region, will invest 22.5 million US dollars in the construction of related production lines.
The two partners are determined to create China's largest amino acid production base within two years, with an annual production output of 5,000 tons of 18 kinds of amino acid.
Annual output value is projected to exceed 30 million US dollars, according to company sources.
Degussa is one of the world's top 500 companies and is ranked the second largest in the world in production of special chemicals. Degussa's efforts to expand the Chinese market began before World War II, and the company is now concentrating investment on the Asia-Pacific region.
According to a company executive, Degussa has set up subsidiaries or business offices in Hong Kong, Beijing, Shanghai and Shenzhen, in addition to two joint ventures in the eastern coastal province of Shandong.
The Only-Time Pharmaceuticals Company is now capable of producing nine kinds of amino acid products, which are sold to different parts of the country, Europe, the Americas and southeast Asia.
Last year, Only-Time reported an output value of 6.4 million US dollars and an export earning of 2.3 million US dollars from exports, with a pre-tax profit of more than one million US dollars.
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