New Chinese JV For Gist-Brocades

Dutch company Gist-Brocades and Zhang Jia Kou Pharmaceutical Corp of China have announced a 50:50 joint venture for the production of bulk penicillin. The agreement is subject to approval by the Chinese government.

Under the terms of the deal, the Chinese company will contribute production facilities through its subsidiary Zhang Jia Kou Pharmaceutical Factory, which employs 660 people. Gist-Brocades will contribute $15 million and provide technology to increase production. Net turnover of the JV is expected to exceed $30 million.

According to the companies, China is a fast-growing market for beta-lactam antibiotics. The JV fits into the strategy of Gist-Brocades' industrial pharmaceuticals products division to cooperate with partners in the most important countries of Asia. Zhang Jia Kou Pharmaceutical Corp is said to be a leading pharmaceutical company in China, and one of the oldest producers of penicillin and other beta-lactam antibiotics. It has a net turnover of around $45 million a year.