Biotech firm TCI Co (大江生醫) on Monday announced that it is forming a manufacturing partnership with NewAge Inc, a US health products company.
Under a memorandum of understanding (MOU) signed by the two firms, NewAge would sell its 50,000m2 manufacturing facility and office in Utah to TCI, which would use it as its US headquarters, the company said in a statement.
The facility would allow TCI to serve its US clients more efficiently, it said, adding that it would take over production as early as the fourth quarter.
TCI would provide NewAge with a combination of US$3.5 million in cash and a share of the facility’s revenue over the next five years, NewAge said in a news release.
The partnership between the two companies is subject to further negotiation, NewAge added.
“This is a great deal for both TCI and NewAge, and we expect this to be just the beginning of a long-term, very successful partnership,” NewAge senior vice president of operations Phil Lewis said in the news release.
“TCI brings incredible technology and manufacturing expertise to the venture, enabling NewAge to focus on leveraging its sales and marketing capabilities, and global distribution network,” he said.
TCI, which is listed on the Taiwan Stock Exchange, develops and produces health supplements, beverages and skincare products.
The company reported that revenue in the first half of the year increased 6.83 percent year-on-year to NT$4.29 billion (US$153.23 million), while earnings per share were NT$3.25 in the first quarter, up from NT$3.13 a year earlier.
Capital Investment Management Corp (群益投顧) said that the deal reflected TCI’s intention to increase its presence in the global health food market, as its revenue in Europe and the US has risen yearly.
“With the large and stable growth taking place in the US health food market, TCI originally planned to build a factory in the US. However, given the US’ strict environmental and fire regulations ... the company changed its strategy and decided to acquire NewAge’s manufacturing facility instead,” Capital Investment said in a note.
The MOU would also allow TCI to benefit from NewAge’s global sales network and 400,000 exclusive distributors, Capital Investment said, adding that it has a positive outlook regarding the company’s diversified business and resource integration.
TCI shares yesterday fell 1.55 percent to close at NT$254.5 in Taipei trading.
Additional reporting by staff writer
Hon Hai Technology Group (鴻海科技集團), also known as Foxconn Technology Group (富士康科技集團) internationally, yesterday said it was confident that its performance would improve in the second half of this year. Investment plans related to electric vehicles (EVs) in different parts of the world are expected to gradually start coming to fruition, Hon Hai chairman Young Liu (劉揚偉) told reporters after leading a new year’s prayer at the company’s headquarters in New Taipei City’s Tucheng District (土城). Major challenges stemming from the COVID-19 pandemic and the Russia-Ukraine war continue to affect the global economy. However, Liu said that he expects a turnaround in
Singapore is seeing an influx of ultra-wealthy families from China looking to protect their wealth from a government that increasingly views them with suspicion. The Chinese Communist Party’s recent crackdowns on tech billionaires and tax-shy celebrities, as well as three years of “zero COVID” policies, have led many rich Chinese to look for a safe haven. Nervous over the fate of their fortunes, some of the country’s mega-rich have since booked tickets to Singapore, insiders said. The key Asian financial hub ticks all the boxes for relocating tycoons. Singapore has been ruled by one party for the past six decades, and labor strikes and
Sex worker Nina relies on an apartment in the Turkish city of Istanbul as a relatively safe space to meet clients, but the 29-year-old is worried about making enough to cover the rent after the landlord doubled the price. As a surge in inflation fuels a housing crisis in Turkey, LGBTQ+ sex workers like Nina say landlords are forcing them to accept huge rent hikes for fear of being evicted. Nina, who uses the pronouns they and them, worries about how they will pay the increased monthly rent of 8,000 Turkish lira (US$425.11) on top of rising bills. “There are gas, electricity, water,
SHARES DOWN: The top 10 companies all decreased in market value last year, due to COVID-19, Russia’s invasion of Ukraine, rising interest rates and global inflation Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the top spot among the largest companies in the Asian supply chain in terms of market capitalization, Digitimes Research said. Citing its Asia Supply Chain Market Cap 100 rankings for last year, the research firm last week said TSMC’s market cap was US$378.45 billion, the highest among Asian suppliers, although it dropped by nearly US$200 billion during the year. The 34.3 percent fall in TSMC’s market cap was the largest decline of any company in the survey last year, but was typical of how many top-ranking companies fared. The top 10 in Digitimes’ rankings all saw
RSS