Reston, Va., July 31 - Emerald Dairy Inc. announced today that the Company has begun construction of a new milk powder processing facility in Hailun City, Heilongjiang Province. Hailun City is located approximately 120 miles north of the Company's headquarters in Harbin City, the capital of Heilongjiang province, and 80 miles south of the Company's existing facility in Bei'an City.
Upon completion in early 2009, the new facility will have an annual production capacity of 9,000 tons of milk powder, bringing the Company's total annual production capacity to approximately 18,000 tons by the end of 2009. The Company has secured milk supply from local farmers for the facility. In addition, the new facility will provide Emerald Dairy with the flexibility to accommodate future production of an additional 9,000 tons as market demand grows. The project will require an investment of approximately $20 million, which the Company intends to finance through internal cash flow as well as potential debt or equity offerings.
Mr. Yang Yong Shan, Chief Executive Officer of Emerald Dairy, stated, "Today's announcement speaks to our long term commitment to grow the Company through capacity expansion. In addition, we believe the new facility, located in the proximity of the capital city, will further strengthen our efforts to expand our geographical presence going forward."
About Emerald Dairy Inc.:
Through its wholly-owned operating subsidiaries, Emerald Dairy Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the People's Republic of China. The Company's products are sold under two brand names -- "Xing An Ling" and "Yi Bai."