Provimi signs joint venture agreement with Aqua Chile

Alitec Pargua to produce saltwater fish feed in Provimi Aqua's existing plant in Pargua, Chile
August 3, 2006

The Provimi Group announced that its Chilean subsidiary, Alitec, has signed a joint venture agreement with AquaChile, the second largest salmon producer in the world, for the production of saltwater fish feed in Provimi Aqua's existing plant in Pargua, Chile. The name of the new company will be Alitec Pargua S.A.

This strategic alliance will create synergies for both companies in the areas of production, product development, research and the testing and optimal use of new raw materials. The two companies will keep their respective businesses independent and with this alliance will formalize and strengthen their long-lasting business cooperation.

Alitec will further optimise the use of its plants' capacity and cost structure and develop new supply and service agreements with AquaChile. Alitec will also significantly improve its knowledge of final consumer markets and strengthen its position in the fresh and saltwater fish feed market in Chile and its export activities.

AquaChile will benefit through the joint venture from having its own high quality aqua feed production and from access to Provimi's worldwide feed R&D and technology, production know-how and raw material purchasing. Alitec's main activity is salmon feed production. The company has two plants, one in Castro on Chiloe Island, where it produces fresh water fish feed and the other one in Pargua, part of this joint venture, for saltwater fish feed with an annual production capacity of 120,000 tonnes.

[Source: Provimi Aqua]