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Update on Ulanqab City manufacturing facility

17th Jul 2012 07:00

RNS Number : 7873H
Sorbic International PLC
17 July 2012
 



 

 

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

[email protected]

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

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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