Origin Agritech’s New Facility (NASDAQ:SEED)

Origin Agritech Limited (NASDAQ:SEED) has announced that they have commenced operation of a new hybrid seed drying facility this fall harvest season. This new seed drying facility is operating in the county of Linze, located in the Gansu Province in the Northwest region of China. This new facility built by Origin Agritech will help them to strengthen their core production capacity in the Northwestern China while meeting all capacity needs. This new seed drying facility will also enhance the ability to control the quality of Origin’s hybrid seeds when moisture reduction is required for seed stock.

CEO of Origin Agritech, Liang Yuan commented that this state of the art drying facility will support increasing demands and quality for their premium seed products throughout China. This facility would also help them to improve the quality of their products and minimize inventory risks that would help them to grow as a company in the future. He further stated that this new seed drying facility only adds to the Origin’s vertically integrated infrastructure throughout all of mainland China.

From a location point of view the site of this facility is important from strategic perspective, as it lies in Gansu region which yields the highest seed production levels of seed corn in entire China. This new facility will also help Origin Agritech to prevent loss of seed stock which did not dry using conventional measures as surrounding environmental temperatures vary.