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Vaccine JV set up in dairy capital
( 2003-10-25 10:43) (China Daily)

California-based Worldwide Agrotech announced Friday that it would set up a joint venture in northern China's Inner Mongolia to produce animal vaccine.

Worldwide Agrotech will hold 51 per cent, while Pangu Group, the largest private company in Inner Mongolia, will control the remaining. Each company will contribute 1.2 million yuan (US$145,000) to the venture located in Hohhot, capital of Inner Mongolia.

According to Worldwide Agrotech, this is the first Sino-US joint venture on the mainland which will produce animal vaccine in accordance with Good Manufacturing Practice - quality system requirements issued by the US Food and Drug Administration.

"This joint venture marks the beginning of an important agricultural agreement between California and China, and we intend to establish a world-class facility with a low-cost base to maximize the value of our products," said C.B. Ng, managing director of China Operations at Asia Capital Group, the holding company of Worldwide Agrotech.

The company said it had gained the approval of the Chinese Government for the use of its Colicure J5 vaccine in China, with plans for mass production in its mainland facilities.

The vaccine prevents an infectious disease in livestock that causes inflammation of mammary glands, which severely decreases milk production.

According to the firm, Inner Mongolia was chosen as the location of the new vaccine plant given the region's designation as the dairy capital of China, with over 1 million of the country's 6 million dairy cows in the territory. The dairy industry in China has recorded double-digit growth in recent years, accelerated by the government's incentives for increased dairy consumption to improve people's health and nutrition.

 
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