PR91311

YICHANG, China, Aug. 25, 2021 /PRNewswire=KYODO JBN/ --

Angel Yeast Co., Ltd ("Angel Yeast")(en.angelyeast.com), a listed high-tech

yeast company in China, has recently announced it has established a joint

venture company to invest RMB 100 million ($15.4 million) to acquire Shandong

Bio Sunkeen Co, Ltd ("Bio Sunkeen"). In doing so, the company seeks to optimize

its production capacity and further consolidate and strengthen its position in

the industry.

Angel Yeast has partnered with Shandong Lufa Holding company ("Shandong Lufa")

to establish Angel Yeast (Jining) Co., Ltd. Angel Yeast (Jining) will acquire

the relevant assets of Bio Sunkeen's yeast product production, while

simultaneously transforming and upgrading its technological capabilities.

"Angel Yeast will utilize Bio Sunkeen's existing facilities, with further

expansion plans in the future. This joint venture project is in line with Angel

Yeast's 2025 strategy focusing on yeast biotechnology, nutrition and health

products, and food ingredients," said Chen Hongwei, General Manager of Angel

Yeast (Jining).

As a national high-tech enterprise, Bio Sunkeen currently has an annual

capacity of 15,000 tons of yeast and yeast extract (YE) through its production

facilities. Its main products include yeast and YE, edible sweet potato starch,

feeding products, compound seasoning, and other yeast augmented products. Angel

Yeast will acquire Bio Sunkeen's yeast and yeast extract-related assets group

in order to implement technological transformation and upgrade its processes

and facilities. Eventually, the company hopes to build it into an important

production base for its yeast products and related raw materials for food,

organic feed, and organic fertilizer.

Angel Yeast's acquisition of Bio Sunkeen will help the company rapidly address

potential capacity gaps as the market continues to grow. According to analysis

and predictions of the period between 2021 to 2025, there will be an

increasingly prominent gap between the growth rate of the yeast market and the

available supply based on the group's annual production capacity. By acquiring

Bio Sunkeen's biological products, Angel Yeast can rapidly increase its

production capacity by 15,000 tons for yeast and YE— reducing its construction

period by nearly two years and increasing the ratio of input to output when

compared to building a new factory.

At the same time, the acquisition will assist in consolidating the yeast

industry and enhancing China's position on the global stage. Angel Yeast's

acquisition of Bio Sunkeen's assets will strengthen its position in the

industry as it reduces market competition by converting competitors into

partners. Together with the capabilities of Bio Sunkeen, Angel Yeast (Jining)

will also be able to expand its channels for the production of yeast from

hydrolyzed corn glycogen, in order to fully leverage the abundance of local

corn resources and address the industry's molasses shortage.

Angel Yeast has contributed RMB 60 million ($9.2 million) to the acquisition

costs and Shandong Lufa has contributed RMB 40 million ($6.2 million). After

the acquisition goes into effect, Angel Yeast has guaranteed employment in

principle for all of Bio Sunkeen's current on-the-job employees related to the

operation of its underlying assets.

About Angel Yeast

Founded in 1986, Angel Yeast Co., Ltd specializes in the production of yeast

and yeast derivatives. Its product range includes baker's yeast and

ingredients, Chinese dim sum solutions, yeast extract-savory, human health,

animal nutrition, plant care, brewing & biofuels, microbial nutrition, and

enzymes. At present, Angel Yeast has 11 international advanced production bases

in China, Egypt, and Russia, and provides products and services for more than

150 countries and regions globally.

SOURCE  Angel Yeast

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