Neptune Technologies & Bioressources Inc. is pleased to announce that it has signed a commercial distribution joint venture agreement with Shanghai Chonghe Marine Industry (CMI) through a wholly owned subsidiary of CMI, Jiangsu Sunline Deep Sea Fishery Co., Ltd. (Sunline Fishery).
Under the agreement, Neptune will own a 30% interest in the joint venture whereas CMI/Sunline Fishery will hold 70%.
Our Chinese partners have a strong presence in the biomarine industry in China, including a state-of-the-art krill harvesting vessel now under construction.
The joint venture will greatly enhance Neptune's commercial presence in China.
Furthemore, Neptune will contribute to this joint venture with its IP, science, regulatory expertise, branding, industry sales knowledge and international recognition. Shipments of krill oil under the joint venture are projected to start in Q1 ending 30 June 2017.
"Canada is one of the very few countries that are currently allowed to export krill oil into China. The purpose of this joint venture is to accelerate Neptune's growth in China, one of the fastest growing omega-3 markets in the world."
"Furthermore, this partnership will help secure procurement of our raw materials, while also strengthening the future of Neptune's presence in the growing Aquaculture business," stated Jim Hamilton, President & CEO of Neptune.
"We came to the conclusion that to become a leader in our mainland, as well as to develop international recognition and presence in the biomarine related krill fisheries, we needed to be associated with the pioneer and the first company to have vested largely in science on both the human nutrition side and pharmaceutical research," concluded Wang Zhi, President & CEO of CMI.
