Daesang Wellife signs MOU with Sinopharm International to start joint venture

Seo Hoon-kyo, CEO of Daesang Wellife, left, poses for a photo with Li Hao, CFO of Sinopharm International, after signing a memorandum of understanding on Wednesday. [DAESANG WELLIFE]

Daesang Wellife announced Thursday it signed a memorandum of understanding (MOU) with Sinopharm International to establish a joint venture and produce nutritional supplements in China.

The joint venture with Sinopharm International, a Beijing-based pharmaceutical company, will be established in Danzhou, Hainan, according to the agreement signed Wednesday. A factory that can manufacture nutritional supplements will also be built in Hainan.

The company says demand for nutritional supplements has recently been rising in China as the rate of chronic and cardiovascular diseases such as diabetes and cancer are on the rise.

Daesang Wellife sells nutrition drinks under its brand Nucare and health supplements such as chlorella tablets under the brand Wellife.

“By working with Sinopharm Group to target the 70-trillion-won [$54 billion] health supplement market in China, we will be able to greatly expand our business portfolio,” said Seo Hoon-kyo, CEO of Daesang Wellife. “It will be Daesang Wellife’s first joint venture abroad, and we plan to continue actively expanding abroad.”

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]