July 23, 2012

Singapore-China joint venture in Jilin focuses on meat, dairy, crop processing

Singapore-based Singbridge Holdings has signed an agreement with the city government of Jilin, China, to establish a joint venture management unit in the Sino-Singapore Jilin Food Zone, where production of  processed meat products, dairy products and secondary processing of crops will take place.

The joint venture will hold a registered capital of US$16 million, with a Jilin state-owned enterprise possessing 60% of stake and Singapore's Singbridge with the remaining 40%. Given the complexity of the Chinese food industry, Singbridge, a company under Singapore's investment firm, Temasek Holdings, believes the bigger share will be useful as it means stronger commitment by the local company.

Chinese authorities hope to tap into Singapore's experience in food safety management. Many key management positions, including the CEO of the joint venture, will be filled by Singaporeans or Singapore nominees.

"This region is a rare experimental plot that combines factors including modern agriculture, urbanisation as well as advanced industrialisation. We hope to become a model in this field," said Fang Liqun, Jilin City's vice mayor.

The Jilin Food Zone aims to be a model food zone with a food safety system of international standard. When completed, the food zone will produce quality products for China and other parts of the world.

Construction is currently ongoing in the Jilin Food Zone. It will take at least another two years to complete the first phase of construction.The entire 1,450-square kilometre food zone is expected to be complete in 15 years.