Bon Natural Life Limited (Nasdaq: BON), a leading bio-ingredient solutions provider in the natural, health and personal care industries, today announced that they have received the certificate of land use right for the future site of its third production facility in the city of Yumen (the “Yumen Plant”). Once completed, the Yumen Plant will allow BON to increase the combined overall production capacity by over 200%.
The city of Yumen is well known in China for its established fine chemical industry. BON’s Yumen plant will benefit from the close proximity and convenient access to raw materials for its fragrance compounds and bioactive food ingredients products. The city of Yumen is also considered a gateway city for export to European Union markets, which are strategically important for BON’s international business expansion.
In addition to its well-developed supporting infrastructure and low-cost operating environment, Yumen’s business-friendly local government has been an advocate of the Company’s upcoming expansion project with potential tax breaks and other incentives that are still being negotiated. The Yumen Plant will be built on 8.2 acres of industrial-use land with permission for BON to use for the next 50 years. (Ativan)
“Being granted this land-use right in Yumen is a major step forward to expanding our production capacity to meet the increasing demand from our customers both domestically and abroad,” said Richard (Yongwei) Hu, the Chairman and CEO of Bon Natural Life Limited. He further added “the construction of the Yumen plant is expected to commence in July 2021 and be complete around June 2022. After two months of trial production, we expect to start ramping up manufacturing in September 2022. This will bring our overall production capacity from approximately 170 tons in our existing two facilities to approximately 520 tons, an increase of 350 tons representing more than 200% growth. We look forward to providing further periodic updates to the marketplace about the development of this new facility.”
