Origin Agritech Ltd.(the “Company” or “Origin”), an agriculture technology company, announced that the company has commenced a joint venture with Sichuan Cloudland Agricultural Science and Technology (“Cloudland”), a subsidiary of Eos Asia Investments Limited (“Eos”) to expand production of NEC corn into Sichuan Province, China.
An opportune region for animal feed production, Sichuan Province has the largest production of pork and is home to 4 of the 10 largest hog farming companies in China. Nevertheless, Sichuan is only ranked 8th in corn production which has resulted in a 10-million-ton per annum deficit in corn for feedstock that must be sourced from other provinces. Sichuan has frequently had the highest corn prices in the country. The regional government has expressed great interest in supporting the growth of Origin Agritech’s NEC corn due to its energy density and resource efficiency allowing more hogs to be fed per unit of corn.
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“I am very excited to joint venture with Cloudland and Eos, a legendary investor in China”, said Dr. Gengchen Han, Origin Agritech‘s Chairman. “This will allow us to quickly expand our production of corn into Sichuan Province next year and will have a positive impact on revenues and earnings, with little capital requirement due to the favorable government policies and local support of our Cloudland JV partner.”
Origin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnologies, Origin Agritech’s phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China’s Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. For further information, please visit the Company’s website at www.originagritech.com. The company also maintains a twitter account for updating investors on company and industry developments, which is @origin_agritech.