Flavor companies in secrets case

French-based multinational company Rhodia is being sued in Shanghai by Jiaxing Zhonghua Chemical Co for allegedly stealing its business secrets.

The Shanghai No.1 Intermediate People's Court yesterday accepted the case from Zhonghua, which is based in Jiaxing, in neighboring Zhejiang Province.

Zhonghua is demanding that Rhodia cease its violations, plus pay 18 million yuan (US$2.9m) compensation, the court said.

Both firms are involved in the production of synthetic vanillin flavoring.

In August, Zhonghua says it found that Rhodia documents presented in court contained Zhonghua's technological and operational secrets.