China based food company New Dragon Asia Corp has today (Wednesday) announced it has acquired a 10-year lease on a soybean processing plant from a state-owned enterprise in Shandong.

The facility is located in Longkou City, Shangdong Province, China, and is principally engaged in the manufacturing and sale of soy bean protein powder and soy bean milk powder. It has three production lines with an aggregate annual production capacity of 3,000 tonnes of soybean protein powder and 1,500 tonnes of soybean milk powder.

"This transaction establishes a new line of business for New Dragon Asia. We expect the soy bean operation will contribute at least $5 million in revenues in 2005 and we look forward to the possibility of expanding the business moving forward," said Heng Jing Lu, chairman of New Dragon Asia.

He noted the soy bean factory sources only organic soy bean, which complements New Dragon Asia's Grade A certification of its flour products by the China Green Food Development Center, an organization solely authorized by the Chinese government to issue the 'green' and organic label to food producers. Lu added that current customers of the soy bean protein powder produced at the facility include baby food and cereal food manufacturers, hotels and beverage manufacturers. The facility also produces a special type of soy bean milk powder for the Chinese National Army.