Nutreco completes acquisition of fish and shrimp feed company in China
Nutreco's purchase of Zhuhai Shihai Feed Co. Ltd. provides Skretting with a production base in China
Nutreco announced today that it has successfully completed the acquisition of 100% of the shares in Zhuhai Shihai Feed Co. Ltd. (Shihai), a reputable and profitable fish and shrimp feed company in China. The revenue in 2010 was EUR 65 million. This acquisition will provide Skretting, the Nutreco fish feed business, with a production base in China, the world's number 1 aquaculture feed market. The acquisition is fully in line with the strategy to capitalise on Nutreco's leading fish feed positions by expanding in new regions and into feed for other species. The acquisition was announced on 14 February 2011 and was subject to approval of the Chinese authorities. These have now granted their permission.
Shihai supplies a growing market and produced approximately 100,000 tonnes of fish and shrimp feed in 2010, a year in which it commissioned a new feed plant with a capacity of approximately 150,000 tonnes. The new plant is constructed and equipped to a high standard and is capable of operating to Skretting specifications. Shihai employs approximately 300 people. Skretting will continue growing the business, supplying fish feed for species such as shrimp, various marine fish species, tilapia, snakehead and catfish.
Nutreco's CEO Wout Dekker said today that the group's revenue in fish feed increased 19.0% in Q3 2011 compared to Q3 2010, mainly due to a volume growth of 12.3%. The price effect was 5.3%. The salmon feed volumes increased due to strong performance in Norway and a recovery in Chile. With the Pargua plant back into production all three plants of Skretting Chile are now being utilized. The exchange effect was -0.2% and the acquisition effect of Skretting Vietnam was 1.7%.