Neptune Technologies Partners with China’s Kai Chuang Deep Sea Fisheries in Joint Venture

Neptune Technologies & Bioressources Inc., a Laval-based company focused on the innovation, production and formulation of products for the nutraceutical and pharmaceutical markets, has completed an memorandum of understanding with the Shanghai Kai Chuan Deep Sea Fisheries Co. Ltd. (SKFC) to form a 50/50 joint venture, Neptune-SKFC Biotechnology, to manufacture and commercialize Neptune’s krill products in Asia. Construction on a production facility and development of a commercial distribution network for Asia are expected to commence with an initial project cost of US$30m. SKFC will supply raw material and Neptune will provide a license to Neptune-SKFC Biotechnology allowing the use of its Production Technology IP for the Asian market in return for a substantial up-front payment and royalty payments. SKFC is a publicly listed Company in China and is 43% owned by Shanghai Fisheries General Corporation, a very large fishing conglomerate owned by the Government of China.