June 4, 2007

Japan's Nosan seeks growth in China's feed market

Japan's Nosan Corporation, a well known producer of livestock feed, has big plans to establish itself in the China market. With Japanese feed demand growth nearing its saturation point, ventures into China will form part of the Japanese company's plans to expand its sources of income in the overseas' markets.

As part of this plan, Yokohama-headquartered Nosan and China's Gaolong Group will established a 40:60 joint-venture company in June. The new company, to be incorporated in the British Virgin Islands with a registered capital of RMB20 million, will establish an aqua feed production plant in the southern Chinese city of Fuzhou.

Separately, Nosan will also acquire a 30 percent stake in Evialis Shandong (Qingdao) Co Ltd, which is owned by French animal health company, the Evialis Group. On completion of the acquisition, the Qingdao plant will start to manufacture intermediates for vitamin products at a capacity of 18,000 tonnes per year. Products from this plant will be marketed first in China and South-east Asia, and then throughout other Asian regions in the near future.