American Oriental Bioengineering, Inc. , Known for Soybean Protein Peptide, Implements Market-Driven Efficiencies at Formerly State-Owned HSPL
AOBO Vice President and Director Min Jun Supervises Day-to-Day HSPL Operations
NEW YORK, Nov 4, 2004 (BUSINESS WIRE) -- American Oriental Bioengineering Inc. (AOBO), a rapidly growing Chinese company which produces and distributes a broad range of pharmaceutical and nutriceutical products, today announced the successful integration of formerly state-owned Heilongjiang Songhuajiang Pharmaceutical (HSPL) into AOBO's market-driven operations and culture. AOBO appointed Min Jun, vice president and director of AOBO, as general manager of HSPL to oversee production, finance, technology, and sales and marketing of the acquired enterprise.
AOBO acquired 100 percent equity ownership of HSPL including all manufacturing assets, facilities, equipment, land and land use rights, raw materials, inventories, intellectual properties and technical talents on September 9, 2004. For more than 50 years HSPL has played an important role in the Chinese pharmaceutical industry. Its focus on R&D resulted in proprietary products such as Shuanghuanglian Lyophilized Powder Injection. The product is an important antiviral medicine and one of the most highly regarded herbal products certified by the Chinese Government for the treatment of SARS.
AOBO conducted a thorough review of HSPL's production facilities including personnel, equipment, and sales and marketing channels to develop and implement a plan to enhance the efficiency, overall productivity and profitability of the company. As a result, AOBO has:
-- Repaired all machinery and equipment to ensure smooth
operation of production facilities;
-- Eliminated unnecessary expenditures to contain costs of
operation;
-- Updated the employment model to eliminate the outdated
life-long employment agreements in preference of more
flexible, market-driven employment;
-- Provided intensive training in accordance with GMP
manufacturing standard to the 231 retained staff members to
update and develop the skills, knowledge and corporate culture
required to effectively compete as a privatized entity;
-- Implemented sales, marketing and promotions structures that
highlight unique product attributes and stress competitive
advantage in the marketplace.
"AOBO is already seeing the positive results of HSPL's newly streamlined operations," said Tony Liu, Chief Executive Officer of AOBO. "The first batch of products rolled off the improved production line in mid-October and have been extremely well received. And, we anticipate that ongoing effective management of HSPL combined with a focus on R&D will increase the depth and breadth of product offering to strengthen AOBO's position even further."
Liu continued, "The acquisition of HSPL strengthens AOBO's position in the industry and moves us closer to our goal of being a top five pharmaceutical company in China. Its R&D capabilities and existing products, facilities and staff should help raise our 2005 net profits by about 50 percent."
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