This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
VANCOUVER, British Columbia, Sept. 16, 2010 (GLOBE NEWSWIRE) -- GLG Life Tech Corporation (Nasdaq:GLGL) (TSX:GLG) ("GLG" or the "Company"), a vertically-integrated leader in the agricultural and commercial development of high quality stevia, announces the signing of an exclusive five-year renewable supply agreement with Fengyang Xiaogangcun Yongkang Foods High Tech Co. Ltd. ("FXY") for GLG's full range of stevia extract products within China.
FXY is a privately held Chinese company based in the Xiaogang region in Anhui province. FXY produces consumer products including stevia and stevia/sugar tabletop sweeteners, reduced and zero calorie beverages and food products mainly for the Chinese market. FXY also has developed stevia/sugar blend products suitable for the China National Sugar Reserve.
Key highlights under the terms of this agreement include:
Agreement describes that the two parties have entered into a long-term strategic relationship for the development and marketing of stevia within China
Initial term of five years with an automatic renewal provision for another five years
GLG will be the exclusive supplier of stevia extract products to FXY
GLG will sell to FXY its full line of products within China including the BlendSure™ product line, PureSTV, Rebpure™, and Rebsweet™
GLG has received an initial purchase order under this supply agreement for $US 12.6 million for delivery within 2010 fiscal year
Dr. Luke Zhang, Chairman and CEO of GLG stated, "This agreement represents a significant milestone for GLG to diversify our business in China. Starting last year, we have focused on the Chinese market, which is one of the fastest growing sweetener markets in world. Since China opened its door to the world in 1978, the China food industry has kept 13.1% average annual growth rate from 1980 to 2001. In 2001, the total China food industry revenue reached RMB 900 billion (equivalent to about US$ 130 billion). More recently, from 2002 to 2009, the food industry in China kept 23% average annual growth rate and in 2009, the total revenue reached RMB 4.7 trillion (equivalent to US$ 693 billion). We expect China's food industry will continue its fast growth for the next 10-20 years when the Chinese middle class population begins to increase.