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Synutra International, Inc. (SYUT) Obtains PRC Government Approval To Move Forward With New Drying Facility In France

|Includes: Synutra International, Inc. (SYUT)

Synutra International, an owner of Chinese subsidiaries that produce, market, and sell nutritional products for infants, children, and adults, announced its receipt of the required approvals from China's National Development and Reform Commission (NDRC) and Ministry of Commerce (NYSE:MC) to construct a new drying facility in Carhaix, France.

As previously announced on Sept. 18, 2012, the company signed a long-term industrial and commercial partnership agreement with Sodiaal, which is France's leading dairy cooperative, and its subsidiary Euroserum, which is a global leader in demineralized whey powders. Synutra will, under this partnership agreement, build a new drying facility in Carhaix for the intended purpose of manufacturing powdered milk and fat-enriched demineralized whey for the needs of the Synutra group. With NDRC and MC approval, Synutra remains on schedule to develop this new drying facility.

Synutra is confident its industrial and commercial partnership with Sodiaal and Euroserum can be a means of further increasing consumer confidence in Synutra brand products, as well as strengthening the company's competitive position as a leader in providing dairy and nutritional products in China.

"It is a very notable achievement for Synutra to have received the required approvals for our French project by the Chinese government," said Synutra Chairman and CEO Liang Zhang, "and we look forward to moving ahead with the development of this new drying facility."

Synutra International is a leading infant formula company in China, principally producing, marketing, and selling its products through its operating subsidiaries under the "Shengyuan" and "Synutra" names, together with other complementary brands. The company's focus is selling premium infant formula products that are supplemented by more affordable infant formulas, along with other nutritional products and ingredients.

Synutra sells its products through a broad nationwide sales and distribution network covering all provinces and provincial-level municipalities in mainland China. This network consisted of more than 660 independent distributors and more than 690 independent sub-distributors as of Dec. 31, 2012, selling Synutra products in around 27,000 retail outlets.

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