Thai aquafeed manufacturer and distributor Thai Union Feedmill (TFM) will invest up to USD 55 million (EUR 46.7 million) in the construction of an aquaculture business facility in Ecuador, the company announced to the Stock Exchange of Thailand.
TFM’s board greenlit the company’s Ecuadorian subsidiary to make the investment during the last director’s meeting on 12 February, according to a letter signed by CFO Piyanuch Marittanaporn.
The move seeks to take advantage of Ecuador’s rapid growth in the aquaculture industry and to further expand TFM’s operations beyond Thailand, reducing dependence on the local market and diversifying revenue sources. TFM added that its investment is expected to boost the company’s competitiveness, enhance overall business operations, and generate long‑term value for the company.
The new plant is expected to increase the company’s total production capacity by about 80 percent. TFM expects to purchase the land, contract factory construction, and execute purchase agreements for machinery, equipment, and production-supporting tools all in 2026. The actual plant construction and machinery installation is slated to take about two and a half years, with project completion and the launch of commercial operations expected for 2028.
The company noted that the transaction is classified as “Type 2” – equal to or greater than 15 percent but less than 50 percent of the company’s total assets. Regarding the project financing, TFM said it will utilize funds generated from operating cash flow and/or loans from financial institutions, as well as proceeds from an initial public offering (IPO), in which the company received net proceeds of approximately THB 1.18 billion (USD 37.6 million, EUR 31.9 million).
“The board of directors has considered and determined that business expansion is reasonable and necessary to create sustainable business opportunities and returns,” TFM said. “This action will not affect the company’s business operations and is expected to generate maximum benefits for the company and its shareholders going forward.”
To further expand its business opportunities, TFM recently announced it had signed a memorandum of understanding (MoU) with the Bangladesh Shrimp and Fish Foundation for the transfer of technology and farming standards to the South Asian nation. The agreement focuses on the development of whiteleg shrimp, black tiger shrimp, giant freshwater prawn, and barramundi.
“This collaboration is not only an expansion of TFM’s business opportunities but also a testament to the global recognition of Thailand’s aquaculture standards. We firmly believe that sharing knowledge and expertise will lead to positive transformation in the aquaculture industries of both countries,” TFM Director of Feed Commercial Hathai Nantathong said during the MoU signing ceremony.
