Nutreco acquires Chinese fish-feed producer
Nutreco on Monday announced that it agreed to acquire a 100 percent stake in Chinese fish-feed manufacturer Shihai Co. Ltd. for approximately EUR 40 million.
In 2010, Shihai Co. Ltd. had revenue of EUR 65 million and produced approximately 100,000 metric tons of fish and shrimp feed. Also last year, the company, which is based in Guangdong province and employs 300 workers, built a new feed plant with a capacity of approximately 150,000 metric tons.
The purchase gives Nutreco a foothold in China, the world’s largest fish-feed market. According to Nutreco subsidiary Skretting, China’s fish feed market is estimated at 8.6 million metric tons, with annual growth of more than 10 percent. Shihai Co. has approximately 5 percent of the high-end fish feed market in southern China.
“Skretting has gained insights into the aquaculture market of China over the past four years through a toll milling operation. Feeds for shrimp, marine species and species such as tilapia are sectors where Skretting can contribute with its nutritional knowledge and manufacturing expertise,” said Knut Nesse, COO of aquaculture for Netherlands-based Nutreco. “It can accelerate progress by sharing knowledge and experience through its presence, for example, in Vietnam and Brazil and activities at the Skretting Aquaculture Research Centre.”
The deal is subject to approval by Chinese authorities.