In 2004, the negotiations concerning the construction of a production plant in China to supply our fruit drinks to the intensively expanding Chinese market were started with other partners. European partners participating in this project include the Swedish company ITC trading (an investment company oriented on China) and Hellefors (the leading Swedish producer of drinks). The other European partner is also Jan-ove Waldner, the former table tennis multiple champion, who is very popular in China because he as the only player was able to compete in this sport with Chinese player for a long time.
Together with Chinese partners that had recruited from business circles in the Shanghai and Hong-Kong areas the negotiations on the construction of a juice and fruit drink factory were commenced. At the end an agreement was signed with the representatives of the JIANGSU province government on the construction of this factory in their province, i.e. in Zhangjiagang. This city has been selected because of its excellent geographical position (it is situated just between main business centres of Eastern China, i.e. Shanghai and Nanjing), as well as owing to the extraordinary support we were here provided by the Chinese government in connection with the factory to be constructed in this area. The economically interested population living in an area of 400 km around the factory exceeds 250 million people.
In present, the share of the European party in the joint venture that has been established for this purpose equals 70%; so, the share of the Chinese party is 30%. The equity paid amounts to 10 million US dollars. Besides, 60% of the whole project is financed from development and investment funds provided by the Chinese government, as well as through a loan by the BANK OF CHINA.
Installed production capacity is 100 million litres of fruit drinks per year; it can readily be extended up to five times, if needed.
