Global Bio-Chem, Mitsui Sign Agreement

Global Bio-Chem, Mitsui Sign Agreement

HONG KONG & TOKYOGlobalBio-Chem Technology Group Co. Ltd. (www.globalbiochem.com) and Mitsui & Co. Ltd.(www.mitsui.com) signed a joint venture agreement for the development,manufacture and sale of sorbitol in the Peoples Republic of China (PRC),according to Global Bio-Chem. Sorbitol is a bulk sweetener used in a wide rangeof applications, including the food, pharmaceutical and cosmetic industries.

The two companies will establish a joint venture company (JVC)in Hong Kong to serve as an investment vehicle of the sorbitol joint ventureproject and establish a wholly owned subsidiary of the joint venture projectin the Changchun, Jilin, province in the PRC, according to Global Bio-Chem. TheJVC subsidiary will begin construction of the sorbitol plant in the secondquarter of 2004 and will have an initial annual production capacity of 60,000metric tons of 70-percent solid base liquid sorbitol. The product will be madein three different grades: vitamin C grade (used for vitamin C manufacturing), food grade(used in food production) and cosmetic grade (used in personal care products).

Under the agreement, products sold in the PRC will carry thebrand name and trademark of Global Bio-Chem, and products sold outside the PRCwill carry the brand name and trademark of Mitsui-owned Nikken Fine Chemicals.