The new factory, near Shanghai, will produce the company's sweetener product SUCRAM.

 

The company's sales director François Gautier said, ''China's feed industry has experienced 20 years of rapid development, with the average development speed staying above 20%. It makes China the world's second largest feed producer.''

 

Gautier added, ''In 2008, Chinese industrial feed production, compound feed production, concentrated feed production and feed additive premix production amounted to 137 million tonnes, 105.90 million tonnes, 25.31 million tonnes and 5.46 million tonnes, rising by 10.83% on-year, 13.64% on-year, 1.58% on-year and 4.79% on-year respectively.''

 

Pancosma said it decided to invest in China in order to develop the market and provide the best service for its Chinese customers. According to the company, research published in the British Journal of Nutrition in collaboration with the University of Liverpool proves that its product SUCRAM is increasing glucose absorption in the intestine of pigs.

 

Forest Lin, Pancosma's sales manager for China, said, ''For the first time it has been demonstrated that SUCRAM interacts with the active transporters of glucose in the pig intestine, leading to a stimulation of glucose absorption. The practical applications of this research are opening new areas of usage of SUCRAM in piglet, sows and growing pigs for improving growth performances and health and convinced the company to invest in the biggest world pig market.''

 

This new factory based in Shanghai is currently under construction. The factory will include two production lines with annual capacities of 6,000 tonnes and 3,000 tonnes. Mr Lin added, ''It took eight months for the special equipment to be designed to the tailor-made requirements of Pancosma by a local pharmaceutical equipment producer.''

 

The factory is due to start to produce SUCRAM at the end of 2010 with quality standards (FAMI QS) similar to the other factories of Pancosma in the rest of the world (Drummondville, Canada; Bellegarde, France; Bützberg, Switzerland; Kutno, Poland) and should be able to answer to the expected market needs of SUCRAM.

 

The factory will also host a new quality control laboratory and the offices of Pancosma China. Gautier said, ''This new factory is the first step of a very ambitious project of industrial implementation of Pancosma in China. The company plans to be able to produce flavours and other specialty feed additives or feed additives mixes in 2011. The ambition of Pancosma is to reinforce its market position in China, to prepare the expected growth in the usage of SUCRAM, and to create extra value for its Chinese customers by producing in China the highest quality feed additives.''