China RuiTai Completes Pilot Test For Biopolysaccharide

China RuiTai International Holdings Co., Ltd., a producer and distributor of cellulose ether products in China, has announced that it has completed a pilot test for biopolysaccharide, which is ready for mass production.

The test was conducted jointly between China RuiTai and the Shandong Academy of Science for Biological Medicine.

Biopolysaccharide is a water-soluble and viscous polysaccharide that can be made into film and fiber and applied as a functional additive in various products, such as medicine capsules, food, food wrapping films, and recyclable shopping bags. It is similar to glucosan and Xanthan gum and can be used for filing and gluing in the pharmaceutical and cosmetic industries and as a conditioner and thickener in food in order to improve food quality. It is edible, environmentally friendly, and has anti-oxidation properties.

"We are pleased to complete a pilot test for biopolysaccharide, which will diversify our revenues when production commences," said Dianmin Ma, chief executive officer and chairman of China RuiTai. "The demand for biopolysaccharide in the pharmaceutical industry in China is estimated to be approximately 2,000 tons per year. We expect demand will grow further as people pay much more attention to safety issues associated with food and drugs in China."

The Company's new plant, which will be capable of producing 100 tons of biopolysaccharide per year, is currently under construction. Management expects to begin mass production in the fourth quarter of 2008 and estimates a selling price for biopolysaccharide of CNY200,000 per ton.

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