The company is owned by the Zuellig group, which offers a range of products under different subsidiaries mainly to the pharmaceutical industry. The group has been present in China for more than 10 years, and has around 10,000 staff in Asia, giving BI an important infrastructure to leverage its growth there.
BI, looking for sales of around $70 million this year, will be looking to improve the quality of the supply chain and reliability of products already sourced from the region.
"Our goal is to be there at the source to provide assurance to customers that we have controlled every step in the supply chain," David Turner, chief executive and chairman of the firm, told NutraIngredientsUSA.com.
Turner acknowledged that the move would also help the company to retain its important market share, as Chinese organisations become more knowledgeable in manufacturing and processing. The Chinese offices in Shanghai and Beijing, to be run by president of manufacturing Klaus Schekahn, will give the business better access to market knowledge and new market developments.
"It will also give us the opportunity to identify more proprietary ingredients," added Turner, given the strong potential for sourcing in China.
BI Nutraceuticals holds a 10 per cent market share in many of its activities, which range from botanical powders and extracts to vitamins, amino acids and minerals, but is aiming to focus on core items "in which we have a competitive advantage", said Turner.
One of its main advantages currently is the use of steam sterilisation of herbals, used by some European firms but no other US-based competitors. The proprietary process offers a cleaner, safer end-product than many other sterilsation methods, such as irradiation, says the company.