Neptune Expands Into Asia by Partnering With Chinese SKFC
Neptune Technologies & Bioressources (Nasdaq: NEPT) announces the conclusion of a Memorendum of Understanding (MOU) with Shanghai KaiChuang Deep Sea Fisheries Co., Ltd. (together the "Parties") to form a 50%/50% Joint Venture named Neptune-SKFC Biotechnology that will manufacture and commercialize Neptune's krill products in Asia, the world's largest market for such products.
The initial cost of the project will reach up to USD $30,000,000 (financed be Chinese Banks and the Parties) to realize the construction of a state of the art production facility using Neptune Proprietary Production Technology in China as well as for immediately developing a strong commercial distribution network for Asia. According to the agreement, SKFC will supply all the raw material and Neptune will provide a license to Neptune-SKFC Biotechnology allowing it rights of use of its Production Technology IP for the Asian Market in return of a significant up front payment as well as for royalty payments.
''We are extremely pleased to partner with Neptune as it is the desire of the Chinese government to develop value-added products from primary fishing industry'' stated Tang Qiqing, Chairman of the Board of SKFC.
