24th Oct 2008 07:00
Embargoed Release: 07:00hrs Friday 24 October 2008
Sorbic International plc
("Sorbic International" or "the Company")
Update Re: New Production Facilities
Sorbic International plc is pleased to announce that it has commenced construction of its new production facilities which are designed to double the Company's production of Sorbic Acid and Potassium Sorbate to meet future anticipated demand. The Company's existing production facilities currently operate at their full capacity from a 33,000 m² site based in Linyi City, Shandong Province, Peoples Republic of China ("PRC"), producing approximately 3,000 metric tonnes of Sorbic Acid and 5,000 metric tonnes of Potassium Sorbate per annum.
Sorbic International has now commenced the first stage of the new development. The new facilities are being built on the Company's land which is immediately adjacent to its existing site. The new production facilities are expected to have a total area of approximately 14,700 m². The total cost of expanding the production facilities will be approximately RMB 100 million (circa £7.3 million) which will be financed from Company's existing cash and working capital facilities. The proposed new production facilities will include two more production lines which would double the existing capacity. The new facilities are due for final commissioning in late 2009 and a major international food manufacturer has already expressed an interest in purchasing the entire output from one of the proposed new production lines.
Commenting, John McLean, Chairman of Sorbic International plc, said:
"We are on schedule with the construction of the new facilities and the official breaking-ground ceremony, which took place last week, received tremendous support from senior Chinese business and government officials. The new facilities form part of our strategy to grow the business through increased production to meet growing domestic and international demand for Sorbic International's products."
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Enquiries: |
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Sorbic International plc, John McLean, Chairman |
Tel: +44 (0)7768 031 454 |
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FinnCap, Geoff Nash |
Tel: +44 (0) 20 7600 1658 |
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Hansard Group, John Bick |
Tel: +44 (0) 7872 061007 |
Notes to Editors: www.sorbicinternational.com
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 ("PRC"). Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market. The Company came to AIM in September 2008 with a progressive profits record and in the six months ended 30 June 2008 it made profits before tax of £2.26 million.
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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