Central Proteinaprima Tbk. Acquires Largest Global US-based Shrimp Genetic Breeding Company

World’s largest fully vertically integrated shrimp producer and processor adds further layer of integration with acquisition of SIS
January 19, 2007

Central Proteinaprima Tbk. Acquires Largest Global US-based Shrimp Genetic Breeding Company

PT Central Proteinaprima Tbk. (JSX:CPRO), the world’s largest fully vertically integrated shrimp producer and processor, as well as Indonesia’s market leader in shrimp fry, shrimp feed and fish feed production, today announced that it has acquired Shrimp Improvement Systems, LLC (SIS), the largest shrimp genetic breeding company and broodstock producer.

SIS was founded in 1998, and is headquartered at its biosceure Nucleus Breeding Center in the Florida Keys, USA.  SIS has a highly successful, aggressive selective breeding program that continually improves disease resistance while increasing growth rates for its specific pathogen free (SPF) pedigree lines of shrimp breeding stocks that it sells to shrimp farming companies in over 20 countries worldwide.  This acquisition, terms of which were not disclosed, represents a marriage of a global leader in shrimp production with a global leader in shrimp breeding and broodstock production.

“This acquisition is an excellent strategic fit for Central Proteinaprima,” said Erwin Sutanto, Director of Operations. “We have now added another level to our vertical integration that further strengthens our operations as well as our global reach.  We will expand SIS’s shrimp genetic research program to specifically select shrimp lines and broodstock, for Indonesian shrimp farming conditions.  This immediately advances our strategy of increasing growth rates and survival rates and will allow us to market SIS’s branded “Great White” postlarvae to the Indonesian aquaculture industry,” he said.

“The Indonesian archipelago is considered an ideal setting for aquaculture because of its access to water, long coastline and the availability of large tracts of land.  Indonesia’s proximity to the equator ensures that shrimp farmers are subject to minimal seasonality, as consistent climate conditions in Indonesia allow shrimp to be harvested uninterrupted, year-round. CPP is the market leader in Indonesia’s shrimp fry and shrimp feed business” said Dr. Dean M. Akiayama, Senior Vice President, aquafeed technology & aquaculture research.

SIS also has a joint venture company (Shrimp Improvement Systems (Thailand) Company, Limited) to produce SIS larvae in Thailand, as well as biosecure broodstock rearing facilities in Singapore (Shrimp Improvement Systems Pte. Ltd.) for distribution of broodstock customers in Asia.

“Shrimp Improvement Systems, SIS was started in 1998 as the first commercial shrimp breeding and broodstock company and currently is a major supplier to the global market.  SIS has been the pioneer in shrimp genetic research and has established a market demand with disease free fast growing broodstock in more than 20 countries.  SIS also has license agreements to market their branded “Great White” postlarvae” said Edward D. Scura, P.h.D,  president Director, Shrimp improvement system.

With more than 16,000 hectares of dedicated land in several locations, PT Central Proteinaprima Tbk., has sales over $500 million.The company employs over 20,000 people including 6,000 full-time employees across the company.