Grain and corn company Deyu Agriculture Corp will extend its reach into northeast China through the establishment of a new subsidiary, Jilin Jinglong Agriculture Development Limited.
The unit, which is primarily engaged in the procurement, storage and sales of corn and grain, will be 99% owned by Deyu.
Deyu emphasised that the move would provide it to access to Chinas northeastern provinces - some of the country's largest corn producing areas. Grains grown in the region include soybeans, kidney beans and sunflower seeds.
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Deyu Agriculture Corp. Adds New Subsidiary, Extends Business Coverage to Northeast China
BEIJING, Jan. 14, 2012 /PRNewswire/ -- Deyu Agriculture Corp. (OTCBB: DEYU) (the "Company"), a Shanxi Province, China based vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains, announced today that the Company formed a 99% owned subsidiary, Jilin Jinglong Agriculture Development Limited ("Jinglong"), which is primarily engaged in the procurement, storage and sales of corn and grain.
In October 2012, Jinglong was incorporated in Jilin Province, one of the three Provinces of Northeast China, with registered capital of approximately US$3.2 million. The Provinces of Northeast China are some of the nation's top crop producing areas. According to the China's National Bureau of Statistics, in 2011, crop production from these regions collectively reached approximately 107.8 billion kilograms, which was approximately 18.9% of China's total crop production.
Regions in Northeast China are especially rich in the production of corn, rice and various types of grains, including soybeans, kidney beans and sunflower seeds. The area as whole is situated around the same Latitude (45° of North Latitude) as the U.S. and Ukraine corn belts, which are collectively known as the world's three "Golden Corn Belts."
"Setting up Jinglong is a major step for us in further developing our agriculture production chain," said Jianming Hao, Chief Executive Officer of Deyu. "With its strategic location in Jilin Province, we expect that Jinglong will play a pivotal role in extending our business coverage to the whole Northeast Region of China. Furthermore, by establishing a more complete value chain from the farm to the market, we are looking to strengthen our commitment to providing organic and green products, as we anticipate that Jilin will help us better ensure quality and efficiency, as well as fortify our resources to develop a more diversified product portfolio."
