Press Release

CH Biotech Opens Global R&D Center and Headquarters


Nantou City, Taiwan, June 19, 2018 -- After twenty months of construction, CH Biotech (TWSE: 6534) opened its Global R&D center and Headquarters building today. The center is home to 14 labs that incorporate various research processes, 10 phytotrons that simulate environmental conditions, and four greenhouses that recreate planting conditions. This state-of-the-art campus will be a key driver for integrating research, technology, and innovation of plant physiology and biotechnology.
 
Many government officials and distinguished guests were invited to the ribbon-cutting ceremony to celebrate the grand opening with us, including Deputy Minister Yu-Chin Hsu of MOST( Ministry of Science and Technology).
 
By taking advantage of advanced biotechnology, at CH Biotech we develop and innovate agrochemical products to address challenges that come with climate change and a growing global population. With a strong lineup of crop- and environment-friendly products, we strive to make a difference in crop yields, food safety, and agricultural sustainability.
 
We have teamed up with Nutrien, a leading US provider of crop inputs and services, in R&D efforts. This strategic partnership has laid a solid foundation for our business operations. Sales grew at a CAGR of 23.6% in 2015-17 and net profits hit new heights year after year.
 
Speaking during the ceremony, Chairman Chenpang Wu laid out his vision. The global research center will help turn the R&D results of Taiwan's agro-biotechnology into commercial products for global marketing, a business goal that is in step with the government's New Agriculture policy. CH Biotech will also use this venue to host international seminars and conferences, which will help foster public awareness of the industry and raise Taiwan's market and academic profile globally. We pride ourselves on a unique business model where products are developed in Taiwan, manufactured in the U.S., and marketed globally.
 
With our global research center based right in Central Taiwan Science Park, we aim to draw on Taiwan's vast pool of agro-biotechnology talents and develop world-class agrochemical formulations. Products are then manufactured in California, US, before being sold to the U.S., Canada, Australia, Brazil, Argentina, Uruguay, and Chile
 
The construction of the NT$2 billion (just over US$66.8 million) global research center started in September 2016. The center is a three-storied building with one basement floor, covering a total floor area of 35,711 square meters. The first floor accommodates greenhouses, as well as the Flavor Quality Lab and classrooms, where chemicals that affect the flavors of tea and coffee are analyzed. On the second floor are five Foundation Labs and nine Solution Labs. Together these facilities serve as an incubator of plant-based research and applications.
 
Going forward, we will benefit from three growth drivers.

1. Raise Taiwan's agro-biotechnology profile. Our research team consists of some 40 members that hold PhD or Master's degrees in biology, agronomy, and chemistry. As business continues to grow, the team will expand to over 100 experts. The research team is not only a driving force for R&D efforts, but also another career path for students of agro-biotechnology in Taiwan. We have collaborated with some of the top universities in Taiwan in areas of academic research, technology transformation, and talent development. By incorporating the results of basic and applied research in our global research center, we offer products that will meet agricultural needs in the future.  

Our labs, compliant with OECD GLP (Good Laboratory Practice), produce analysis and research data that are recognized by international registration agencies. Once registered, the relevant information can be used for product registration in the country of production and the country of sale. This globally connected process helps make Taiwan's agro-biotechnology more competitive in the food market worldwide.

2. Expand Research Scale. Our global research center has 10 phytotrons and four greenhouses. Various climate and planting conditions are meticulously regulated to simulate the environments for major crops across the world. This rigorous process ensures research data are practical, accurate, and reproducible. As a result, research time at labs is greatly reduced and longer-term research projects can be put in place. The number of research projects is likely to double each year.

3. Include more crops in research. Currently we focus our applications on field crops such as corn, soybeans, and wheat. As the new center comes with more R&D personnel and facilities, we will begin to extend our reach into ornamental plants, flavor quality, and economic crops (such as orchards), creating a growth driver for operations for years to come.