Chinese aquaculture giant partners with Jordanian firm, sets up Dubai office
One of China’s leading aquaculture firms has entered a joint venture with a Jordanian firm to expand its aquaculture operations across the Gulf region.
A memorandum of understanding signed recently between Guangdong Evergreen Group and United International Technology will see the two firms set up Evergreen International, which will seek contracts in the United Arab Emirates, the broader Middle East, and Africa. The new venture will operate from an office in Dubai but it’s not clear if it will act as a consultancy or as a supplier or manager of aquaculture facilities.
This isn’t the first time that Evergreen has entered the Middle East market. An Evergreen note to investors explains that the deal with the new agreement is a follow-up to a successful project – the company’s first overseas – completed in 2015 in Egypt. The new deal could see Evergreen staff, systems and seedlings headed to the region in volume.
Company documents refer to a recent visit to Evergreen headquarters, as well as the company’s feed and seedlings facilities, by the general manager of United International Technology, who’s referred to only by the surname Feras.
“In line with our policy of internationalization, we hope that both companies can together go to more countries with modern technology, while also stimulating agricultural development,” said a statement from Evergreen. It added “In line with the ‘One Belt, Two Roads’ policy, we will open up international markets for Chinese goods.”
“One Belt, Two Roads” is China’s official policy of expanding trade ties through international infrastructure-building.
One of the giants of China’s aquaculture sector, Guangdong Evergreen Group (and subsidiary Evergreen Aquatic Product Science and Technology Co Ltd.) is based in Zhanjiang, the same city as shrimp leader Guolian Aquatic Group. With activities ranging from breeding to feed production, as well as aquaculture and processing and distribution, the company’s operations are spread between the shrimp breeding hot-spot of Zhanjiang and the other large aquaculture centre, Beihai (in neighboring Guangxi), where the Beihai Evergreen Aquatic product Science & Technology Co. is a key Evergreen hatchery location.
Evergreen has installed elaborate water filtration and sterilization systems to boost output of shrimp larvae and brood stock in response to rising demand. Given that margins for larvae are as high as 33 percent – significantly higher than prices for live or processed produce – the company’s stated ultimate goal is to expand its breeding activities.