A major Chinese conglomerate with ambitions to become a player in offshore aquaculture has taken a stake in a private aquaculture seed specialist.
Shandong Hai Yang Modern Fishing Co, a subsidiary of state-run Shandong Hai Yang Group (Shandong Marine Group) has purchased a majority shareholding in Lai Zhou Ming Bo Aquatic Products Co., which specializes in seedlings for the aquaculture sector and feed for China’s fisheries sector. Terms of the deal were not disclosed.
China’s government has recently been encouraging well-resourced, state-owned companies to take stakes in promising private firms. The transaction appears to have been guided by provincial officials as part of the Shandong strategic blueprint for becoming a “Strong Ocean Province” represented by firms active in fishing, aquaculture, shipping, and energy exploration.
Shandong Marine Group has subsidiaries involved in all those areas and in 2018 set up Shandong Modern Fisheries Co. to expand sea-based aquaculture. The firm built and deployed the “Geng Hai No.1” platform for deep-water aquaculture.
