October 11, 2017
Dachan Great Wall Group expands in Myanmar and Cambodia
In separate announcements, a Taiwan-based agri-food giant is investing in feed mills and poultry plants in Myanmar and Cambodia as part of the company's corporate strategy to expand in the ASEAN region.
In Myanmar, the Group is embarking on a US$30 million joint venture with Myanmar firm Myint Investment Group, the Myanmar Times reported. DaChan will hold a 51% stake in the joint venture.
The joint venture will set up feed mills for livestock and aquaculture as well as poultry plants to produce chickens and eggs. The entire project is expected to be completed by the end of 2018.
DaChan chair Charles Han said that his group seeks to develop an integrated supply chain of poultry products in Myanmar by replicating its success in other ASEAN countries.
In Cambodia, Asia Nutrition Technologies (ANT), a Cambodia subsidiary of the Group, will invest US$7.5 million in developing an animal feed plant in the Phnom Penh Special Economic Zone (SEZ), the Phnom Penh Post reported.
ANT had signed a lease agreement in early September to operate a factory on 2.8 hectares of land in the SEZ. Factory operations are set to begin in the first quarter of 2019 after a 14-month construction period. The new plant will have an annual production capacity of 144,000 tonnes and is expected to employ 150 workers.
ANT previously exported its feed products to Cambodia from a factory complex in Vietnam, and is now taking a greater stake in Cambodia's fast-growing feed market by producing the feed locally. The company joins two other animal feed producers in Phnom Penh SEZ, namely China's New Hope and Thailand's Betagro.
ANT will source feed raw materials both locally and abroad to produce its three signature brands: Red Star, DaChan and Dr Nupak.
ANT is one of only five companies to sign lease agreements with Phnom Penh SEZ since the start of the year. The SEZ has struggled to bring in high-profile investors since listing on the Cambodian stock exchange in May 2016.