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Origin Agritech Joins Hand With Eos' Cloudland Focusing Sichuan Province

Benzinga · 11/15/2022 13:17
  • Origin Agritech Ltd (NASDAQ:SEED) has formed a joint venture with Eos Asia Investments Limited subsidiary Cloudland to expand the production of NEC corn into Sichuan Province, China.
  • Sichuan Province has the largest pork production and is home to 4 of the 10 largest hog farming companies in China. 
  • Sichuan has a 10-million-ton per annum deficit in corn for feedstock that is sourced from other provinces.
  • The regional government has expressed interest in supporting the growth of Origin Agritech's NEC corn due to its energy density and resource efficiency.
  • "This will allow us to quickly expand our production of corn into Sichuan Province next year and will have a positive impact on revenues and earnings, with little capital requirement due to the favorable government policies and local support of our Cloudland JV partner,” said Chairman Gengchen Han.
  • Price Action: SEED shares are trading higher by 4.55% at $9.64 on the last check Tuesday.