Yasheng Group, a high-growth diversified China-based agricultural conglomerate with U.S. headquarters in Redwood City, California, today announced that it has entered into a Joint Venture with IBC International LLC (a Utah-based food manufacturer), to form Angel Star Nutrition LLC — a Delaware-based Limited Liability Company. The purpose of the new venture is to produce powdered infant formula and other nutrition products for distribution worldwide.
Yasheng Group and IBC have worked closely to develop and license infant and toddler formulas for importation into mainland China to address China's increasing demand for foreign-made milk powder. During this period Yasheng Group has acquired the necessary licenses from China's CIQ to begin commercial shipment importation, while IBC has secured the necessary FDA and USDA approvals and plant certifications to begin production and exportation of powdered Infant formula.
Yasheng Group and IBC will be co-owners of Angel Star Nutrition LLC, with each party holding a 50% stake in the venture. Mei P. Wu (President of Yasheng Group) will serve as CEO, while Steven P. White (President of Intermountain Brands Corporation) will serve as President. Angel Star will be based in West Valley City, Utah, where the products will be manufactured. Angel Star products are made from a blend of USDA Grade "A" dairy products, meeting the highest standards for product safety and nutritional value.
Under the new agreement, Yasheng Group will retain all marketing rights for products produced by the venture and distributed in China, Hong Kong and Taiwan. The parties will work together to develop markets for Angel Star products in other countries. Angel Star products are currently in various stages of governmental approval in Vietnam, the Philippines, Indonesia and Mexico. Angel Star expects to expand its line of products into other areas of nutrition supplementation over the next 36 months — including products for aging adults and pregnant women, as well as supplements specifically designed for use by diabetics — an increasing problem in China.
According to the China Dairy Industry Association, the infant formula milk powder market in China has had an average annual increase of 22.9% since 2000 and is now the second largest in the world. It is estimated that the infant formula market will reach $12.0 billion in 2013 and that China will become the worlds' largest consumer of infant milk powder in the near future, with over 20 million newborns every year. Recent changes in China's one-child policy are expected to spur additional growth in this segment.
Source: Marketwired News
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