On 8 June 2017, Kiwa signed an equity purchase agreement with Yantai Peng Hao New Materials Technology Co. in Penglai city, Yantai apples main producing area, in Shandong, China
The agreement relates to the acquisition of a new factory (which is currently idle) for a purchase price of RMB15mn (approximately US$2.2mn). The factory covers an area of 5.9 acres, with 8000sqm of standardized steel plant.
The factory to be acquired by Kiwa will be completed in accordance with Kiwa's construction plan to facilitate the production design of combining of microbial fermentation and terminal fertiliser products. When fully implemented, the factory will produce approximately 200,000 tons of Kiwa fertilizer products every year, primarily for sale to the Yantai fruit cultivation base.
Mr. Yi Wang, Director of Agriculture Department of Penglai City, attended the signing ceremony and welcomed Kiwa's investment in the construction of bio-fertiliser production bases in Penglai. Mr. Wang observed that "Penglai City is the main apple growing area in China. Due to excessive consumption of chemical fertilisers in recent years, the soil of Penglai region has been faced with issues, which we believe that the use of Kiwa's biological fertiliser production base will ameliorate -- resulting in an improvement of the soil quality and quality of fruit and production in Penglai. We strive to have Penglai fruit quickly become the best brand of Chinese fruit products."
