Daesang Life Science Corp., a South Korean health foods maker, has signed an initial agreement with China’s Sinopharm International to launch a joint venture to enter the Chinese dietary supplements market, which is estimated at 70 trillion won ($53 billion).
Daesang Life, a unit of food giant Daesang Corp., the producer of globally renowned kimchi products under its Jongga brand, said on Wednesday it has inked a letter of intent (LOI) with Sinopharm International on establishment of the joint venture.
Sinopharm International is a subsidiary of China’s largest drugmaker, China National Pharmaceutical Group Corp., commonly referred to as Sinopharm.
Under the LOI, the two companies agreed to build a health foods factory in China’s southern province of Hainan, and to make joint efforts in research and development, marketing, and sales of Daesang’s products in China.
Daesang Life is known in Korea and around Asia for Nucare, a nutritional formula for patients; the protein product Mymil; and other health supplements under its Wellife brand.
“Demand for medical-purpose dietary supplements is growing rapidly in China amid an increase in chronic diseases such as diabetes, cancer and cardiovascular disease. We expect significant growth in China’s functional foods market,” said a Daesang Life official.
Sinopharm International, the medical care and health foods unit of Sinopharm, a state-owned enterprise, posted 59 billion yuan, or 11.46 trillion won, in sales last year. (Source: kedglobal.com)
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