Biomagnetics Diagnostics Corp, a US-based medical testing company, has created Global Bio Energy to hold the rights to a manufacturing process for a biodegradable form of plastics called PVA.
Clayton Hardman, chief executive of Biomagnetics Diagnostics Corp, said: "Biomagnetics receives cash and minority shares in Global Bio Energy Corp. Global Bio Energy holds a 70% position in Shenzhen Global Bio Energy Crop, a Chinese company. The inventor and patent holder owns the remaining 30%. Global Bio Energy Corp. has just signed a contract with Linyi County, Shandong Province that guarantees sales of plastic film of a minimum 600,000 tons per year. Once expansion is completed, expected to take 5 years, annual net profit is expected to be approximately $1bn. I have just been invited by the governor of another province to enter into a similar contract."
He added: "We are currently discussing expansion capital requirements with several investment groups."
A Chinese entity has committed $10m to set up the company’s manufacturing in China. Biomagnetics Diagnostics Corp will own 5 million shares in Global Bio Energy.
Global Bio Energy will license its PVA to the Chinese entity. These fees will be used by Biomagnetics Diagnostics Corp to develop and manufacturing an integrated optical biosensor device, alongside Los Alamos national laboratory.
This story was updated with Clayton Hardman’s comments after initially being published on Monday.