Denmark’s BioMar Group and China’s Tongwei Co. have signed a final joint venture agreement to establish a joint fish feed company in China.
The new company will supply high performance feed to the growing production of high value fish species in China.
"After the signing of the Memorandum of Understanding this spring we have elaborated on the agreement, and with the final contract signed, we can now proceed to the next phase and start the actual construction of the first BioMar-Tongwei feed plant in China", said BioMar CEO Carlos Diaz.
The first feed plant will be located in eastern China and will have a capacity of around 100,000 tons.
"Our target is to become operative and start production next year, taking advantage of the joint experiences of BioMar and Tongwei in plant design and construction. In the meantime we will through the joint venture start offering imported BioMar diets to the Chinese market", explained Mr Diaz.
Entering the Chinese market and establishing a joint venture with one of the largest fish feed companies in the world is a major step forward for BioMar and according to Carlos Diaz an important move towards delivering on the objectives set out in BioMar's global strategy.
"We are happy that BioMar will soon be able to serve customers in one of the most important aquaculture markets in the world with high performance diets. And I am sure this step will lead to further expansion for BioMar in Southeast Asia", he said.
The objective for BioMar-Tongwei is to use the experience from this first joint project and expand with several production units across China in the coming years.
