Herbalife is opening a new extraction facility for botanical compounds in Hunan Province in China.
The new facility is expected to open in the second half of 2011. The facility is a joint venture with NatSource Chemicals and its principal Qun Zheng. The new extraction facility will purchase botanicals directly from farms in Hunan province and other regions, perform extraction and other conversion processes and then send these processed raw materials directly to Herbalife’s manufacturing facilities in Suzhou, China and Lake Forest, California or to its third party manufacturers throughout the world, the company added.
The new extraction plant will produce botanical extracts including teas, guarana, chamomile, broccoli and bilberry. Herbalife is also in the process of entering into strategic supply agreements with farmers in Hunan and other provinces to provide traceability for its ingredients.
Herbalife’s 80,000sqft facility in Changsha will be capable of processing approximately 8,000 metric tons of raw materials annually through extraction, purification and drying of powders and liquids. The new plant will create approximately 120 local jobs. The project received support from the Hunan provincial and Changsha City governments.
– Dan Mitchell, MLM Blog Correspondent –