17th Jul 2012 07:00
Press Release | 17 July 2012 |
Sorbic International plc
("Sorbic" or the "Company")
Further update on Ulanqab City manufacturing facility
Further to the announcement made on 26 March 2012 and as referred to in the Company's Interim Results on 28 June 2012, Sorbic International plc (AIM:SORB), the third largest sorbates producer in China, is pleased to provide the following update to shareholders on its manufacturing facility in Ulanqab City, Inner Mongolia.
The Company recently met with local authorities in Ulanqab City, Inner Mongolia to discuss the effects on the Company of the proposed zone reclassification and to seek clarity on any potential compensation plan that would be offered by the Ulanqab authorities. Present at the meeting were John McLean, Chairman, Wang Yan Ting, CEO and Ryan Ng, CFO, and the meeting was arranged through the British Embassy in Beijing and the Foreign Affairs Office of Inner Mongolia and Ulanqab. The Company is appreciative of the support it has received both from the Embassy and the Chinese Government.
Talks between the two parties were constructive and positive for Sorbic. The Company was informed that the site where its manufacturing facility is currently situated is to be utilised for a passenger railway terminal and Sorbic has been offered land on an adjacent site, approximately 0.5km away, for a new manufacturing facility. In terms of compensation, Sorbic was informed that the Company would suffer no financial loss as part of this rezoning and the details, including timing, of the compensation package are currently under negotiation. As soon as these negotiations are finalised, the Company will update shareholders.
- Ends -
For further information: | |
Sorbic International plc | Tel: +44 (0)7768 031 454 |
John McLean, Chairman | www.sorbicinternational.com |
finnCap | |
Geoff Nash / Ben Thompson Simon Starr (broking) | Tel: +44 (0) 20 7600 1658 |
Media enquiries:
Abchurch Communications | |
Joanne Shears / Oliver Baxendale | Tel: +44 (0)20 7398 7709 |
www.abchurch-group.com |
Notes to Editors: www.sorbicinternational.com
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
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