Guolian Aquatic, a seafood processor and shrimp exporter based in Zhanjiang, Guangdong Province, China, is in talks with a large distant-water fishing firm regarding a strategic cooperation agreement.
Lan Ping Yong, the CEO of Fujian, China-based Poly Hong Dong Fishery Co., led a delegation of company executives to Guolian’s headquarters for top-level discussions on the partnership this week. Poly Hong Dong, also known as Fuzhou Hong Dong Yuan Yang Fishing Co, operates a large fishing and processing operation in Mauritania – which the firm claims is China’s largest international fishery base. Additionally, Hong Dong is one of the key backers in the planned Fuzhou Lianjiang National Distant Water Fishing Base, which is being billed as a CNY 1.5 billion (USD 210 million, EUR 195 million) investment on a 336-hectare site.
A cooperation deal between the two firms would see Guolian “add value” to his company’s products, said Lan, who is also a delegate to the National People’s Congress, China’s parliament, which meets each March.
Lan may be seeking to reposition his company’s business model away from sales of unprocessed catches to Chinese and export buyers. The COVID-19 epidemic has battered demand for premium seafood product in China, but has led to an increase in demand for processed products – a trend buttressed by downward pressure on income growth in China.
Lan, who has previously stated his ambition to build the company’s presence across West Africa and Latin America, told Guolian Chairman Li Zhong the two companies are “complimentary,” according to a statement to the local press. However, details on what the specifics of the partnership would look like in terms of distribution, and whether the products would be distributed under the Guolian brand, have not been revealed publicly.
Guolian has invested heavily in marketing and distribution in recent years, while also building a clientele in the country’s fast-growing quick-service restaurant sector.
Photo courtesy of Guolian Aquatic
