Evonik China Co. Ltd and Shandong Vland Biotech Co. Ltd introduced they’ve agreed to construct a three way partnership to increase their presence in intestine well being options merchandise for livestock globally. Evonik would be the majority shareholder on this three way partnership with 55% of the shares. The three way partnership, known as Evonik Vland Biotech (Shandong) Co. Ltd., can have its headquarters in Binzhou, China, and is deliberate to enter the market in Q1 2024.

The three way partnership will mix the precise strengths of each companions, together with Vland’s market entry, regulatory capabilities in China in addition to its quick innovation cycles. In addition, the three way partnership will profit from Evonik’s world gross sales pressure and market entry, R&D and world regulatory capabilities. Sales of the brand new three way partnership are anticipated to be within the low double-digit million euro vary.

Evonik introduced earlier this 12 months that it’s creating its specialty diet enterprise with system options and specialties for poultry, swine and ruminants. The partnership with Vland on intestine well being options is a vital component in the direction of Evonik’s technique to supply system options for its clients within the animal feed business.

Customized system options consisting of merchandise, companies and knowhow delivering sustainability advantages are a part of the strategic core of Evonik’s life science division Nutrition & Care, which incorporates the Animal Nutrition enterprise line. Biosolutions akin to probiotics for animal intestine well being will strengthen the division’s biotechnology platform.

“This joint venture combines the strengths of two successful players in the feed additives business and provides a solid platform for future growth,” stated Dr. Gaetano Blanda, head of the Animal Nutrition enterprise line of Evonik. “Together, both partners gain broader market access for their products and combine their innovative strength.”

Arron Chen, chairman and president of the Vland Group, commented: “I am happy to join forces with Evonik. The joint venture builds on the successful cooperation between our two companies, which we are now taking to a new level.”

Both partners will bring their gut health businesses – such as probiotics and formulated products – into the joint venture to cover the Greater China Region. The Greater China Region accounts for more than 20% of the global feed additives market.

Evonik Vland Biotech (Shandong) Co. Ltd. will also engage in creating new gut health products. As part of the agreement, Evonik will distribute the joint venture’s portfolio outside of the Greater China Region. The joint venture allows Evonik to expand its gut health solutions by adding broader formulation elements to its global product portfolio.

“The three way partnership of Evonik and Vland will improve our portfolio in Asia Pacific. Both firms will develop quicker collectively than they’d have on their very own,” said Shirley Qi, regional president of SEAANZ and head of Nutrition & Care Asia at Evonik.

The aim of Evonik’s gut health solutions is to maintain the productivity of farm animals without using antibiotic growth promoters (AGPs). Today, probiotics such as Ecobiol, Fecinor, GutPlus and GutCare are the basis of this portfolio. They consist of living microorganisms added to animal feed to maintain or restore the microbial balance in the animal’s gut, helping to make animals more resilient.