BEIJING-(BUSINESS WIRE)-Oct.24,2007-Origin Agritech Limited (NASDAQ: SEED) (“Origin”) announced today that it has completed a new hybrid seed production facility in the city of Chengdu. Chengdu is the capital of the Sichuan Province in the southwest region of China. The new facility includes a hybrid rice and corn seed conditioning plant with a capacity of 10,000 kilograms per hour, making it one of the largest seed conditioning plants in southwestern China. The facility also possesses a seed testing laboratory and 4,000 square meters of administrative offices. The new facility increases the Company’s production capacity, significantly improves its supply and distribution network in the region, and reinforces Origin’s ability to control the quality of its hybrid seeds at all levels.
The Sichuan Province and the neighboring Hunan Province and Hubei Province are known for growing rice. Therefore, from a strategic perspective, the southern location of this new facility will facilitate Origin’s ability to deliver premium hybrid rice seed to Southeast Asia in the near future.
Dr. Gengchen Han, Chairman and Chief Executive Officer of Origin, commented, “We believe this state-of-the-art facility should support increasing demand for our premium seed products in Southwestern China. Our measured expansion into the region should continue to be a major growth driver for us near term and into the future. This addition further strengthens Origin’s vertically-integrated infrastructure throughout mainland China.”