Sanofi-Aventis’ Merial Expands (NYSE:SNY)

Sanofi-Aventis’ animal health group Merial has announced the new US$ 70 million project for the expansion of poultry-vaccines plant in the Nanchang development zone in China. Currently, Merial has been operating in China and is utilizing the existing factory to produce poultry vaccines for use in China. Sanofi-Aventis’ vet group Merial operates in China together with partnered organizations for poultry vaccines and also for the improvement in the quality of poultry protein. Merial was established in 1997 as a joint venture between Sanofi-Aventis and Merck. However in July 2009, Merck sold its fifty percent interest in the joint venture to Sanofi-Aventis for a whopping US$ 4 billion in order to purchase Schering-Plough. In the current scenario, Sanofi-Aventis owns Merial alone.

Sanofi-Aventis stated that Merial’s expansion project will help them to extend Merial’s leadership in China in terms of high-quality vaccine offerings, sales, technical support and logistics.

Merial’s Chief Executive Jose Barella stated that the new state-of-the-art facility will help them enhance and improve the poultry protein to meet the ever-increasing demands by the consumers in China. Sanofi-Aventis is hoping that this will help them build better relationships in China and will symbolize their commitment to this market.