25th Mar 2010 07:00
|
Press Release |
25 March 2010 |
Sorbic International plc
("Sorbic International" or the "Company")
Trading Update and Expansion Plans
Loan from Albany Capital
Trading update
Sorbic International plc (AIM:SORB), the third largest sorbates producer in China, is pleased to announce that trading remains robust. Due to unforeseen environmental factors, the Company experienced interrupted production at the beginning of the new financial year. Sales were affected by intermittent stoppages of the production lines for the following reasons:
|
·;
|
November 2009 – Power shortage due to snow storm (4 days)
|
|
·;
|
December 2009 – Environmental improvement to water treatment plant mandated by the Linyi Business Park from 5th to 19th December (15 days)
|
|
·;
|
January 2010 - Power shortage due to snow storm in Northern China from 7th to 13th January (7 days)
|
These unusual trading stoppages have unfortunately had a small impact on results. Other than this disruption, results remain broadly line with expectations on a constant currency basis, with selling prices starting to increase. The Directors expect the firming of prices to continue.
The Company will provide a further update at the Interim Results in late May 2010.
Inner Mongolia
Sorbic International is pleased to provide an update on its plans to build two new lines in Ulanqab city, Inner Mongolia:
|
Registration of subsidiary, Inner Mongolia Gold Van Science and Technique Company (IMGVST) was completed on 22 January 2010 with registered capital of 10 million RMB;
|
|
|
Registration of Project is being processed at Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the Environmental agency and approval is expected at end of March 2010; and
|
|
|
Construction in Inner Mongolia is expected to commence as scheduled in April 2010 and be completed by autumn 2010.
|
Loan from Albany Capital
Sorbic International continues to make progress and its wholly owned subsidiary in China, LVST, remains profitable and cash generative. Albany Capital Group Limited ("ACGL") (formerly Albany Capital plc), which is a significant shareholder (20.4%) in the Company, has agreed to extend its one year term loan facility to Sorbic International plc from £300,000 to £500,000 on a fixed rate of 7.5 per cent. per annum in order to fund head office operating costs.
Management Team
Sorbic International is also pleased to announce the appointment of Mr Shue Bao Sheng as a consultant to the Company.
As a US citizen, Mr. ShueBao Sheng, aged 56, is a native Chinese who holds a Bachelor degree in Literature from Beijing University and a MBA degree from the USA. Mr. Shue has more than 20 years experience in the specialty chemical industry. His participation in the executive management program at Harvard Business School gave him the opportunity to apply his knowledge in transforming local companies. As a business leader of various international companies, he has successfully built manufacturing facilities in China, grown distribution channels and built professional sales teams.
After bringing Sorbic International to AIM, the Company's CEO, Mr Ang Wee Boon will be stepping down from his position, with effect from 30 April 2010, to take on a non-executive role as part of the Company's development plan. Mr Wang Yan Ting, President and Executive Director, will take over as interim CEO until the Company identifies a suitable candidate for the next phase of its development.
- Ends -
|
For further information: |
|
|
Sorbic International plc |
Tel: +44 (0)7768 031 454 |
|
John McLean, Chairman |
www.sorbicinternational.com |
|
FinnCap |
Tel: +44 (0) 20 7600 1658 |
|
Geoff Nash / Ed Frisby / Simon Starr (broking) |
|
Media enquiries:
|
Abchurch Communications |
Tel: +44 (0)20 7398 7709 |
|
Joanne Shears / Mark Dixon |
|
|
www.abchurch-group.com |
Notes to Editors:
About Chahar Industrial Park
Chahar Industrial Park is located in Ulanqab City, Inner Mongolia, in the north of the Peoples Republic of China ("PRC") and is the traffic hub that links North China with its neighbour, Mongolia and the main land route for international trade from China to Mongolia, Russia and Europe. Ulanqab City has a total land area of 54.5 thousand square kilometres and a population of 2.73 million people and is a one hour to drive from Hohhot Baita Airport, which lies 130 kilometers east of Hohhot. Beijing is 300 kilometers (3 hour drive) to the south and Tianjin port is 400 kilometers away.
About Sorbic International plc
Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China. Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market.
Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals.
Related Shares:
Sorbic International