(Yicai Global) Feb. 12 -- Vitaworks has requested the United States International Trade Commission investigate the world's largest taurine producer, China's Yongan Pharmaceutical, for allegedly infringing on patented production techniques.

Vitaworks and VitaworksIP have filed a Section 337 complaint and want exclusion orders and injunctions imposed on Hubei province-based Yongan, the accused said in a statement yesterday. Section 337 is part of the US Tariff Act of 1930 and bans unfair competition and imports, including violations of American trademark and patent rights.

Yongan has hired a stateside law firm to defend its case, it added, saying it has put together a working group to help its attorneys submit documents to a New Jersey court.

Taurine is widely used as a health supplement and in food and beverages, and demand for the compound is increasing as several countries, including the US and China, are looking to incorporate it into infant food. Over 90 percent of global production takes place in China, mostly by Yongan, Hubei Yuanda Life Sciences & Technology, Jiangyin Huachang Food Additive and Jiangsu Yuanyang Chemical.

Yongan commands a roughly 50 percent market share and exports more than 80 percent of its goods. It generated CNY390 million (USD57.5 million) in operating revenue from taurine in the first half of last year, over three quarters of its total income, compared with slightly more than half a year earlier.

Editor: James Boynton