Daesang Welllife Co Ltd has recently concluded a memorandum of understanding (MoU) with China Sinopharm International, an affiliate of China’s largest pharmaceutical conglomerate Sinopharm Group, to form a joint venture to produce nutritional supplements for the mainland China market.
The joint venture will build a factory in Danzhou, Hainan to make food for special medical purposes (FSMP) and functional/health food using world-class production infrastructure.
In recent years, China has witnessed a surge in chronic diseases such as cardiovascular diseases, diabetes and cancer, leading to higher demand for FSMP. Continued growth of this niche market is expected as the government lowers market barriers for entry by foreign companies.
Daesang Welllife’s New Care is the top brand in South Korea for food and nutrition drinks given to medical patients and its Welllife brand features health supplements with chlorella and arginine as ingredients.
Seo Hoon-kyo, CEO of Daesang Welllife said, “By working with Sinopharm Group to target the US$54 billion health supplement market in China, we will be able to greatly expand our business portfolio.” He added, “It will be Daesang Wellife’s first joint-venture abroad, and we plan to continue actively expanding abroad.”
