GLG Life Tech Set for China Stevia Market

Stevia developer GLG Life Tech Corp. (GLG; Vancouver) has announced major progress in its quest to bring stevia (Stevia rebaudiana) to China health foods and beverages. Fengyang Xiaogangcun Yongkang Foods High Tech Company Ltd. (FXY), a zero and low-calorie food and beverage manufacturer created through a GLG joint venture, now meets the production capacity required to supply 1 million metric tons of “Low Calorie Sugar” to the Chinese sweetener market.

FXY was created by China Agriculture and Healthy Foods Company Ltd. (CAHFC), a joint venture partner with GLG Life Tech, as part of a joint venture called Dr. Zhang's All Natural and Zero Calorie Beverage and Foods Company (AN0C). FXY’s Low Calorie Sugar (LCS) blend replaces one-third of sucrose with GLG’s BlendSure stevia and will be incorporated into related products.

“We are confident in the progress we have made in advancing the low calorie sugar market opportunity in China,” said Song Xiankun, CAHFC president and chairman. “This is a very large opportunity for FXY and GLG and one million metric tons of LCS is equivalent to three million metric tons of refined sugar…We believe that the success of LCS will be very beneficial to China to promote the development of healthier food and beverage products as well as help the country manage its current sugar shortage issue.”

Moreover, FXY recently began construction on a new facility in Xiaogang, China to support an additional 10,000 metric tons of LCS production. Facility construction should be complete by September 2011.