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Sorbic International

  • BY: Andrew Hore |
  • POSTED: 19/08/2010 |

Sorbic acid and potassium sorbate producer Sorbic International has completed the acquisition of land in Inner Mongolia for its new facility that doubles Sorbic’s capacity to 15,000 tonnes per annum.

Interim chief executive Wang Yanting has lent the group RMB24.4m (£2.3m) to finance the purchase of the land. There is no interest charge or fixed date for repayment.

Construction of the 7,500 tonnes per annum facility started in April and it should be completed later this year. The total cost of construction will be around £10m. Production should start next summer.

Sorbic reported a fall in revenues from £8.52m to £5.42m in the six months to March 2010. Power shortages and environmental changes meant that there was one month of lost production and higher raw material costs hit margins. Pre-tax profit dived from £2.59m to £335,000. There was £6m in the bank and £509,000 owed to Albany plus a small net amount owed to directors.

At 31.5p a share, Sorbic is valued at £10.5m.

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