Asia Bio-Chem Group Co. Ltd. (“Asia Bio-Chem” or the “Company”), through its wholly-owned subsidiaries is a leading manufacturer in China of corn starch and related byproducts. The Company has the capacity to produce approximately 850,000 tonnes of corn starch, corn germ, gluten and fibre per year making it one of the largest processors of corn in China. The Chinese primarily supplies the sweetener and livestock feed industries in the domestic Chinese market, which has been experiencing robust demand for agriculture products.
Cornstarch is used in the manufacturing of hundreds of food products including MSG, fructose, maltose, glucose, dextrin, citric acid and lysine. Cornstarch is also used to produce sugar alcohols such as sorbitol and mannitol and is used to produce a wide variety of modified starch products for the pharmaceutical, pulp and paper and fine chemical industries. The cornstarch manufacturing process also produces three by-products: corn germ, gluten and fiber. Corn germ is used by the Company’s customers to produce corn oil used in the production of food products such as margarine. The gluten and fiber by-products are used as additives to feed for livestock farmers. Gluten is a valuable source of protein for livestock feed.
In January, 2011 Asia Bio-Chem announced an expansion into the sweetener business. The Company is currently constructing a third production facility adjacent to its Daqing plant which will use starch from the existing operations for further refinement into sweetener products.