Thai Union doubles shares in Russian company, closes plant in Thailand
Thai Union has doubled its stake in a subsidiary in Russia in an effort to expand markets in Europe, the seafood giant said in a filing to the Stock Exchange of Thailand on Monday, 11 August.
A transaction completed in July saw Thai Union’s stake in TUMD Luxembourg (TUMD) – held through its subsidiary, Thai Union EU Seafood 1 S.A. – increase to 90 percent from 45 percent previously. MDF Investments Ltd. holds the remaining 10 percent in TUMD.
TUMD wholly owns three Russian companies including Dalpromryba LLC, Torgovo-Promyshlenny Komplex Dalpromryba LLC, and Maguro LLC, which are collectively referred to as the DPR Group (DPR). DPR’s focused business is fish and seafood retail. It is also a leading producer of canned tuna in Russia with brands such as Maguro, Captain of Tastes, and Rybar, according to Thai Union.
"Thai Union is expecting to drive and accelerate DPR’s business strategy and increase synergy with Thai Union as a supplier. Its manufacturing and distribution platform offers significant opportunities for further growth and development in key European and emerging markets,” Thai Union said.
Separately, Thai Union closed one of its Pakfood plants in Pakpanung, Thailand, as of 9 June. The closure of the producer of pasteurized crab meat was due to “increased difficulty to procure the right raw materials and lack of competitiveness which ensued, as well as impact from COVID-19,” the company said in the second quarter results report released Monday.
Thai Union said it does not expect the shutdown of the plant to place any significant impact on the company’s business as the closed factory only accounted for 0.2 percent of Thai Union’s revenue last year and the majority of Pakfood still makes an important contribution to the group’s growth.