Shandong Zhonglu Oceanic Fisheries Co. is looking to further promote the consumption of tuna in China, having recently announced a major processing investment by its parent company.
The Jiao Zhou Zhonglu Ocean Innovation Production Park is a CNY 960 million (USD 153 million, EUR 134 million) project that includes processing facilities, cold storage, and distribution facilities to be built on the outskirts of Qingdao. The firm is also building office, research, and conference facilities on the site.
Zhonglu operates tuna purse-seine vessels out of Tema, Ghana, and claims to be China’s first distant-water operator to launch vessels targeting Atlantic tuna. Zhong Lu’s Ghana-based subsidiary, Yaw Addo Fisheries Co., is one of several Chinese-owned fishing firms operating in Ghana criticized by the Environmental Justice Foundation for its use of flags of convenience.
Zhonglu, which is a supplier to Japanese and Western buyers, is making a push to increase Chinese consumption of tuna. Last year, it launched its “Tuna” app aimed at driving direct sales to domestic buyers. In early December, the firm participated in a large promotional event in downtown Qingdao, where it touted tuna’s nutritional value and gave out free samples of its products.
Zhonglu’s earnings have been mediocre, with the firm blaming overcapacity in the global tuna sector for weak pricing. In 2020, its revenue of CNY 966 million (USD 144.9 million, EUR 125.6 million) was down 14.4 percent from 2019, while its profits fell by 64 percent to CNY 29.5 million (USD 4.4 million, EUR 3.8 million).
Zhonglu’s revenues grew 10.3 percent year-on-year in 2019 to reach CNY 1.2 billion (USD 168 million, EUR 156 million), but profits attributable to shareholders were down 8.8 percent to CNY 82.3 million (USD 11.5 million, EUR 10.6 million).
Photo courtesy of Shandong Zhonglu Oceanic Fisheries Co.
