Biostime International Holdings, a provider of premium pediatric nutrition and baby care products providers in China, has formed a joint venture agreement with Hangzhou Coco Healthcare, Ltd. to make baby diapers in Hong Kong. The joint venture company will initally invest in five baby diaper production lines capable of making eight million baby diapers per year. Three of the five lines will begin operation by the end of September 2014 while the other two will start by September 2015.
Coco Healthcare will invest 60% of the start up costs, estimated at RMB100 million ($12 million), while Biotime Hong Kong will chip in 40% of the capital. The company will be governed by a group of five board of directors, of which three will represent Coco Healthcare and two will represent Biotime.
Coco Healthcare, based in China, has been making disposable hygiene products since 2001. The majority of its output has targeted foreign markets.