The joint venture will combine the specific strengths of both partners, including Vland’s market access, regulatory capabilities in China as well and its fast innovation cycles
Evonik China Co., Ltd and Shandong Vland Biotech Co., Ltd agreed to build a joint venture to expand their presence in gut health solutions products for farm animals globally. Evonik will be the majority shareholder in this joint venture with 55 per cent of the shares. The joint venture, called Evonik Vland Biotech (Shandong) Co., Ltd. will have its headquarters in Binzhou, China, and is planned to enter the market in Q1/2024.
The joint venture will combine the specific strengths of both partners, including Vland’s market access, regulatory capabilities in China as well and its fast innovation cycles. In addition, the joint venture will benefit from Evonik’s global sales force and market access, R&D and global regulatory capabilities. Sales of the new joint venture are expected to be in the low double-digit million euro range.
Evonik announced earlier this year that it is developing its speciality nutrition business with system solutions and specialities for poultry, swine and ruminants. The partnership with Vland on gut health solutions is an essential element towards Evonik’s strategy to offer system solutions for its customers in the animal feed industry.
Customised system solutions consisting of products, services and know-how delivering sustainability benefits are part of the strategic core of Evonik’s life science division Nutrition & Care, which includes the Animal Nutrition business line. Biosolutions such as probiotics for animal gut health will strengthen the division’s biotechnology platform.
Evonik Vland Biotech (Shandong) Co., Ltd. will also engage in creating new gut health products. As part of the agreement, Evonik will distribute the joint venture’s portfolio outside of the Greater China Region. The joint venture allows Evonik to expand its gut health solutions by adding broader formulation elements to its global product portfolio.
