China: American Lorain Corp Leases New Facility for Food Production

Tag : Frozen Vegetables Versus Canned Vegetable

American Lorain leased 60,000 square feet of facilities, consistingof two buildings on June 10, 2008. The lease term on the facilitiesis for ten years. One of the buildings will be used for officespace and the other one will be used for food production. The foodproduction facility measures approximately 38,750 square feet andwill be equipped with a refrigeration storage unit with a 1,000-toncapacity. The Company plans to equip the production facility withcash on hand. The Company plans to produce packaged foods andconvenience foods products such as pickled vegetables, preparedmeat, and noodles at the new production facility.
"By expanding our business operation to the Guangdong Province inSouthern China, we expect to not only lower our transportationcosts, but also to be close to our customers," said Mr. Si Chen,Chairman and Chief Executive Officer of American Lorain. "Webelieve that leasing versus constructing a new facility allows usto ramp up production sooner than if we were to build our ownfacility. We expect to start production at the new facility byearly September," added Mr. Si Chen.
About American Lorain Corp.
Shandong Lorain, an indirectly owned subsidiary of American LorainCorp., was founded by Mr. Si Chen, CEO of American Lorain, inShandong Province, People's Republic of China, 1995. When AmericanLorain started its operations in 1995, the Company sold chestnutproducts. However, in 2002, the Company entered the canned, frozenand bulk foods packaged market and in 2004, the Company entered theconvenience foods packaged market. Although, the Company's chestnutproducts are mostly for sale to international markets, theconvenience food, and frozen, canned and bulk food products are forsale in the domestic market, in China.