September 2, 2004

Third Phase Project of China's Largest Feed-Grade Aureomycin Plant To Begin Production In October

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The completion of the third phase project of China's Huazhong Chia Tai Co. Ltd's feed-grade aureomycin plant in China's Henan province will make it the largest producer of the product in China. Production for the third phase project is expected to commence in October 2004.

Jointly established by Henan Tianfang Pharmaceutical Group and Thailand's CP Group in 1996, Huazhong Chia Tai Co. Ltd employs bio-fermentation technology to produce feed-grade aureomycin, an antibiotic for preventing diseases and promoting of growth in livestock.

Huazhong Chia Tai Co's aureomycin products are exported to seventeen countries including Europe and North America. In China, there are four manufacturers producing similar products. 

Since 1997, the company has invested RMB131 million, of which foreign funds constituted RMB85.4 million, into the three-phase construction project.

The first phase project, costing RMB54 million, was completed in July, 1997. It is capable of producing 10,000 tons of aureomycin per annum, generating RMB100 million in sales revenue and US$5.5 million export revenue.

The second phase project, costing RMB39.95 million, was completed in August 2003. Annual production capacity reached 17,000 tons, generating RMB160 million in sales revenue and US$10 million in export revenue.

An additional RMB38.5 million has been invested in the third phase project, which began in February 2004 and is scheduled to commence operation in October this year. This would raise Huazhong Chia Tai Co's annual production capacity of aureomycin to 25,000 tons, generating sales revenue of RMB200 million and export revenue of US$15 million.