The partnership, named Evonik Vland Biotech (Shandong) Co. Ltd., will be headquartered in Binzhou, China, and will enter the market in the first quarter of 2024, aiming to achieve sales in the low double-digit million-euro range.
With Evonik as the majority shareholder, holding 55% of the shares, this strategic alliance will combine the unique strengths of both companies, leveraging Vland’s market access, regulatory expertise in China, and rapid innovation capabilities, with Evonik’s global sales force, research and development prowess, and worldwide regulatory capabilities.
Earlier this year, Evonik revealed its commitment to expanding its speciality nutrition business with tailored solutions and specialities for poultry, swine, and ruminants.
The partnership with Vland, which focuses on gut health solutions, aligns seamlessly with Evonik’s strategy to offer comprehensive system solutions to customers in the animal feed industry.
These system solutions consist of products, services, and expertise that deliver sustainability benefits, and they represent a core component of Evonik’s life science division, Nutrition & Care, which includes the Animal Nutrition business line. Biosolutions such as probiotics for animal gut health will enhance 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 Gaetano Blanda, head of the Animal Nutrition business line at Evonik. “Together, both partners gain broader market access for their products and combine their innovative strength.”
Both partners will contribute their gut health businesses, encompassing probiotics and formulated products, to the joint venture, focusing on covering the Greater China Region. This region represents over 20 percent of the global feed additive market.
“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,” Arron Chen, chairman and president of the Vland Group, expressed his enthusiasm for the collaboration.
In addition to distributing existing gut health products, Evonik Vland Biotech (Shandong) Co. Ltd. will embark on developing new gut health solutions. This venture allows Evonik to expand its global gut health offerings by introducing broader formulation elements into its product portfolio.
“The joint venture of Evonik and Vland will enhance our portfolio in Asia-Pacific. Both companies will grow faster together than they would have on their own,” affirmed Shirley Qi, regional president of SEAANZ and head of Nutrition & Care Asia at Evonik.
The primary aim of Evonik’s gut health solutions is to enhance the productivity of farm animals without relying on antibiotic growth promoters (AGPs). The portfolio includes probiotics like Ecobiol, Fecinor, GutPlus, and GutCare, which are living microorganisms added to animal feed to maintain or restore the microbial balance in the animal’s gut, ultimately making animals more resilient and healthier.
This joint venture is poised to bring innovative solutions to the global agricultural industry and is a significant step towards advancing sustainable and healthy practices for farm animals. Evonik and Shandong Vland Biotech’s collaboration is expected to have far-reaching implications for the future of animal nutrition and welfare.