Danmark DLG establishes a partnership with China Henan PUAI Feed Group
DLG is establishing a partnership with PUAI Feed Group (a Chinese feed manufacturer), with the Danish Government’s Investment Fund for Developing Countries as a co-investor. The total ownership share in the Chinese company is 25%.
The investment is intended to give DLG access to the Chinese market where Danish pork production know-how in particular has great potential but also in terms of purchasing where a wide range of important Chinese raw materials and ancillary substances can boost DLG's competitiveness in the European market.
PUAI Feed Group generates turnover of around Euro 0.16 billion , and has 1,500 employees and seven factories in China. The present owners took over the company in 2001.The level of production is currently 320,000 tons a year, and the group is experiencing excellent growth with continued expansion in the years ahead.
DLG is currently one of Europe's three largest agricultural companies and will contribute its know-how in the production of quality feedstuffs and vitamin and mineral compounds, but also quality and food safety, while production and sales processes will be managed by PUAI Feed Group.
"From DLG's perspective, our entry into the Chinese market is perfectly in keeping with our overall strategy, where one of our objectives has been to gain a foothold on the Chinese market. This agreement means that we have succeeded in doing so and we have great expectations for it. The agreement expands DLG's position as a significant international player," says Kristian Hundeb?ll, Group CEO of DLG. Kristian Hundeb?ll continues:"DLG is keeping a sharp eye on interesting new pork-production markets like China. Our strategy for entering these markets is through partnership models, acquisitions, etc. Partnerships provide a high level of local familiarity and the possibility of infusing the group with new technical know-how.