Tuesday, August 18, 2015

18/08/2015: BioMar and Tongwei confirm final Joint Venture agreement

The BioMar Group and China's Tongwei Co have on the 18th of August signed the final Joint-Venture agreement for the establishment of a joint fish feed company in China. The new company will supply high performance feed to the growing production of high value fish species in China.

”After the signing of the Memorandum of Understanding this spring we have elaborated on the agreement, and with the final contract signed, we can now proceed to the next phase and start the actual construction of the first BioMar-Tongwei feed plant in China”, said BioMar CEO Carlos Diaz.

The first feed plant will be located in eastern China and will have a capacity of around 100,000 tons.
BioMar CEO Carlos Diaz
”Our target is to become operative and start production next year taking advantage of the joint experiences of BioMar and Tongwei in plant design and construction. In the meantime we will through the Joint Venture start offering imported BioMar diets to the Chinese market”, explained Carlos Diaz.

Entering the Chinese market and establishing a Joint Venture with one of the largest fish feed companies in the world is a major step forward for BioMar and according to Carlos Diaz an important move towards delivering on the objectives set out in BioMar’s global strategy 'Beyond the limits'.

”We are happy that BioMar will soon be able to serve customers in one of the most important aquaculture markets in the world with high performance diets. And I am sure this step will lead to further expansion for BioMar in Southeast Asia”, he said.

Carlos Diaz emphasised the importance of bringing BioMar’s know-how to the fast growing segment for high value fish species in China: ”We have a long tradition for creating diets which secure fish farmers the best total economic performance in their farming operations and at the same time are environmental friendly.”

He explained that BioMar has its’ roots in Denmark, a country with the toughest environmental legislation in the world, with very elaborate standards for food safety, and where farmers measure feed performance very precisely.

”This and our solid platform in the salmon market have provided us with unique capabilities to serve the high end market. We believe these capabilities will be of great value in China in the coming years.”

The objective for BioMar-Tongwei is to use the experience from this first joint project and expand with several production units across China in the coming years.

About Tongwei and BioMar
Founded in Denmark in 1962, the BioMar Group A/S is a leading supplier of feed to the aquaculture industry, ranking among the top three suppliers in the field of high performance feed worldwide. Currently BioMar has 11 production facilities, producing feed for more than 30 different species including among others salmon, trout, sea bass, sea bream, eel, sturgeon, turbot, tilapia and shrimp.

BioMar feeds are sold to more than 60 countries and a new factory is at present being built in Turkey and is expected to enter operation early in 2016. In 2014, the sales volume of BioMar was close to 1,000,000 tons with a turnover around 1.1 billion Euro. BioMar is fully owned by Danish Schouw & Co listed at the Nasdaq Copenhagen stock exchange.

Tongwei Co Ltd is a leading Chinese feed producer listed at the Shanghai Stock Exchange, and a part of the Tongwei Group. Tongwei operates nationwide in China as well as in Southeast Asia with over 100 branches and subsidiary companies. In 2014 Tongwei produced around 4,000,000 tons of feed of which 2,500,000 tons were aquaculture feeds.

This makes Tongwei the world’s largest aquafeed manufacturer as well as a major livestock and poultry feed producer. It has held the leading position in the Chinese aquafeed industry for the last consecutive 22 years and it is continuing a rapid expansion within aquaculture research, aquaculture, animal health care, and food processing. The annual sales revenue of Tongwei currently exceeds RMB 10 billion.

Visit the BioMar site HERE.

The Aquaculturists
This blog is maintained by The Aquaculturists staff and is supported by the
magazine International Aquafeed which is published by
Perendale Publishers Ltd

For additional daily news from aquaculture around the world: aquaculture-news

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