Daesang Life Science Establishes Joint Venture with China's Sinopharm Group to Enter Chinese Health Supplement Market

At the virtual signing ceremony of the letter of intent for investment, Suhun Kyo, CEO of Daesang Life Science (third from the left), and officials are taking a commemorative photo.

[Asia Economy Reporter Song Seung-yoon] Daesang Life Science is making a full-scale entry into the Chinese health functional food market, which is worth 70 trillion won.

According to the industry on the 27th, Daesang Life Science signed a Letter of Intent (LOI) to invest in establishing a joint venture in Yangpu, Danzhou City, Hainan Province with Sinopharm International, a subsidiary of Sinopharm, the largest pharmaceutical group in China.

Based on China's national development strategy, Daesang Life Science will collaborate with Sinopharm International in the health industry sector. Through the establishment of this joint venture, they plan to build production lines for special medical purpose foods (such as patient foods), health functional foods, and functional general foods, and to combine their strengths comprehensively in production, management, and marketing. The joint venture will target the Chinese and global markets based on Daesang Life Science's health food brands such as 'Newcare' and 'Wellife' and its factory operation know-how.

A production plant for special medical purpose foods and health functional foods with global production infrastructure and competitiveness will be constructed in Hainan, and sales of Daesang Life Science's products will be promoted through partnerships such as general trade. Additionally, leveraging Daesang Group's 66 years of food research expertise and technological capabilities, the joint venture plans to provide extensive support from product research and development to marketing.

Seo Hoon-gyo, CEO of Daesang Life Science, stated, "Daesang Life Science demonstrated top-level manufacturing capabilities in the industry by acquiring HACCP and GMP certifications for the Cheonan Plant 2, completed at the end of last year," adding, "Based on this competitiveness, we will actively invest and cooperate with Sinopharm Group to establish ourselves as a leading company in the 70 trillion won Chinese health functional food market and the global health food market."

This content was produced with the assistance of AI translation services.