Overview

Currently, Asia Bio-Chem, through its wholly owned subsidiary Changtu Bio Chemical, produces over 270,000 tonnes/year of corn starch and its related by-products corn germ, gluten and fibre. Asia Bio-Chem was established in 2003 and currently has 333 employees operating in Liaoning Province, 130 km north of Shenyang (Capital of Liaoning).

Location

Changtu County, Liaoning Province

Manufacturing Plant - 16,000m²

• Robust demand for agriculture products in China presents a significant growth opportunity for Asia Bio-Chem.
• The Company enjoys several competitive advantages including raw material, lower transportation and labour costs.
• The Company’s current capacity is 300,000 tonnes/year. The Manufacturing Plant is complemented with a 1,100 m² Office Building and a 74 m² laboratory.

The Company primarily produces cornstarch which is sold to industrial customers in a variety of industries. In the food manufacturing industry, cornstarch is used as a thickening agent to provide texture to various foods and to suspend other materials such as fats and proteins in food products. Cornstarch can be further refined into a variety of downstream products including, sweeteners such as glucose and fructose, monosodium glutamate or MSG and a variety of amino acids used in animal feed. Cornstarch is also used in the manufacturing of hundreds of products including paper products, textiles, building materials, biodegradable plastic and synthetic fibre. Cornstarch is also used in the manufacturing of pharmaceutical products such as dextrose, vitamins and antibiotics.

The cornstarch manufacturing process produces three by-products: corn germ, gluten and fibre. Corn germ is used by the Company’s customers to produce corn oil used for cooking or in producing margarine. The gluten and fibre products manufactured by the Company are used by livestock farmers as animal feed.

Over the past three years the Company has invested approximately $4,000,000 to increase production capacity. Production has increased during this period by over 60% to the current levels of approximately 200,000 tonnes of starch, 21,000 tonnes of corn germ, 18,000 tonnes of gluten and 34,000 tonnes of fibre.

The current facility is located in Changtu County of Liaoning Province. The manufacturing plant is 15,798.55 square meters in size. The facility utilizes a standard wet milling process to process corn, with a daily corn processing capacity of approximately 1,000 tonnes of corn. See “Manufacturing Process”

The Company sources corn kernels from farmers, graineries and government owned distributors located in and around the manufacturing facility in Changtu County, Liaoning Province. Changtu County is located in the northern region of Liaoning Province and falls within one of the three major corn producing regions of the PRC.