The Chinese subsidiary of Haikui Seafood AG is relocating its existing processing facilities to the new Dongshan Marine Biotechnology Industrial Park.
The existing seafood processing facilities are currently located within a residential and commercial zone under Dongshan’s city development plan so, a ‘relocation agreement’ has been made with the local authorities and the company to move current operations to the new plant.
“The relocation agreement enables us to build a highly efficient seafood processing plant with modern and faster equipment on one site at very attractive terms,” said Chen Zhenkui, CEO, Haikui Seafood.
“This puts us in an excellent position to pursue our ambitious mid and long term growth plans,” he added.
Based on the agreement, Haikui Seafood will acquire land use rights for around 12 hectares for the construction of the new plant, which is already underway. Further land use rights for around 52 hectares at the same location will be reserved for Haikui Seafood for future expansion opportunities.
The company is set to receive compensation payment for the existing factory based on market values as determined by a mutually agreed independent valuation firm.
According to the agreement, the shift will be carried out within six months after completion of the new factory, and is therefore expected to happen towards the end of 2016 or beginning of 2017.
Haikui’s management board has updated its investment and facility design plans for the new plant in line with the agreement. The total expected investment of the new processing facilities is around 550m Renminbi (US$90m).
Haikui Seafood processes fish and seafood for the Chinese and international markets. Its product range includes frozen or canned fish and seafood, produced from a large variety of species of raw fish and seafood including prawn, crab, shellfish and cephalopods.
