New supply agreements in China
Hochdorf, 9 October 2012 – HOCHDORF Nutricare AG, affiliated company of the HOCHDORF Group, has signed supply agreements for the Chinese/Asian market with two new partners. The agreements are for a potential supply of around 1,000 tonnes of infant formula annually by 2015.
Around 17 million children come into the world every year in China – double the entire Swiss population. There are 48 million children in China between the ages of one and three, which is the market for infant formula and infant foods. Around 46 billion RMB (approx. CHF 6.8 billion) of infant formula was sold in China in 2011. An annual volume of 60 billion RMB is anticipated by 2015, which corresponds with annual growth of 15%.
Negotiations with the two Asian companies were concluded recently. Both are major companies who are established in this market and listed on the stock exchange. Thanks to these new partners, the HOCHDORF Group is expecting additional growth in China beyond the general market growth of 15%. «We are focussing our export efforts on the rapidly growing regions of China/Asia, South America and North Africa. We are close to agreeing further major supply agreements,» said Damian Henzi, CEO of HOCHDORF Group.
Datong Coalmine Group Foreign Trade & Economic Cooperation Co., Ltd
A supply agreement has also been signed with Datong Coalmine Group Foreign Trade & Economic Cooperation Co., Ltd, another significant partner in the Chinese market. The company belongs to Datong Coal Mine Group, founded in 1949 and quoted on the Peking Stock Market, and currently employing over 200,000 workers. In the 2011 business year the group achieved a turnover of 104.9 billion RMB (approximately CHF 15.5 billion). HOCHDORF infant formula will be sold under the Alpreen® brand from the distributor Beijing Zhongrui Tiande International Trade Co., Ltd. The first sales are already planned for this year.
Orient Europharma Co. Ltd.
Located in Taiwan, this company was founded in 1982 and is quoted on the Taipei Stock Exchange, achieving a turnover for 2011 of approximately US$ 125 million (CHF 117.4 million). In addition to the area of nutrition, Orient Europharma is also active in the pharmaceutical/oncology and cosmetics sectors. The company has subsidiaries in China, Hong Kong, the Philippines, Malaysia, Singapore and Vietnam and employs a workforce of over 700 staff. The HOCHDORF Group produces special infant formula for Orient Europharma, such as hypoallergenic (HA) infant formula. These products are sold under the Babecare® and Karihome® brands.
Dr. Christoph Hug, Head of Corporate Communications, HOCHDORF Group, Tel: +41 (0)41 914 65 62 / +41 (0)79 859 19 23, firstname.lastname@example.org
The HOCHDORF Group, based in Hochdorf, achieved a consolidated gross sales revenue of CHF 346.6 million in 2011. It is one of the leading foodstuff companies in Switzerland, employing 361 staff as of 31.12.11 (338 full-time staff). Made from natural ingredients such as milk and wheat germ, HOCHDORF products have been contributing to our health and wellbeing since 1895 – from babies to senior citizens. Its customers include the food industry and retail sector and its products are sold in 80 countries. The shares are traded on the SIX Swiss Exchange (ISIN CH0024666528).