XI'AN, China, Dec. 1, 2015 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on November 23, 2015, a groundbreaking ceremony took place for the Yidu orange project in Yidu City, Hubei Province with Government representatives and SkyPeople Chairman and Chief Executive Officer Yongke Xue in attendance.
"We are excited to break ground on what is planned to be a state-of-the art operation for the comprehensive processing of oranges," said SkyPeople Chairman and CEO Yongke Xue. "The manufacturing facilities will incorporate advanced international processing technology which will create value-added in the production of a wide range of high margin orange products."
"Upon completion in 2017, the new facilities will become another major production base for SkyPeople in addition to those that the company currently has in Northeast China and Shaanxi Province. We are pleased to partner with the Yidu municipal government in this opportunity to create exceptional products for both domestic and international distribution as well as to further bolster the region's strong agricultural industrial zone known for its abundant orange production," concluded CEO Xue.
As previously announced, the total investment in the Yidu orange project will be approximately RMB 300 million ($48 million), which includes fixed assets and the purchase of land use rights. Pursuant to the Investment/Service Agreement entered into by the Company's subsidiary, SkyPeople Juice Group Co., Ltd. and the Yidu Municipal Government in Hubei Province, China, the project will be built on a parcel of land approximately 280 mu (46 acres) located in the city of Yidu, Hubei Province. The Company will develop a concentrated orange juice production line and other facilities, such as storage facilities, a sales and distribution center, and an R&D center. The Yidu Municipal People's Government will be responsible for the basic infrastructure surrounding the project land, such as the main water supply, main water drainage, main roads, natural gas provision and the communications network. Yidu Municipal People's Government completed the demolition of the buildings on the project's land.
The Company located its orange project in Yidu, Hubei Province, consistent with the its strategy to locate its manufacturing facilities near major fruit growing centers. Further, in this project as well as the kiwi project in Mei County, it is executing its strategy to vertically integrate its operations to ensure a steady supply of fresh fruit.
Hubei Province is one of the biggest citrus production provinces in China, with the city of Yidu also known as the "town of citrus."
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized under the laws of Hong Kong Special Administrative Region of the People's Republic of China and a wholly owned subsidiary of Pacific, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople," which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.
This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, the Company's ability to successfully list on the NEEQ and obtain financing through its potential listing on the NEEQ and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Hanjun Zheng, Interim Chief Financial Officer
SkyPeople Fruit Juice, Inc.
Tel: China +86-29-8837-7161
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SOURCE SkyPeople Fruit Juice, Inc.