January 9, 2007
China's New Hope buys Qianxihe Food
China's biggest feed manufacturer New Hope Group has disclosed a plan to invest RMB 122 million (US$ 16 million) to buy 60 percent stake in Qianxihe Food Co Ltd, a Beijing-based pork processor.
The move, according to the company was in line with the company's incentive in diversifying its portfolio and venturing into meat processing.
Qianxihe currently has a total slaughtering capacity for five million pigs a year, with its two modern abattoirs in Beijing and Hebei. Another abattoir in Liaoning province is under construction.
In July 2006, Qianxihe was named as an exclusive supplier of fresh and processed pork products for the Beijing 2008 Olympics.
New Hope Group has been focussing on livestock business, while divesting its non-core business like chemicals. It acquired a majority stake in Shandong Liuhe, a leading feed manufacturer and poultry processor in east China, in April 2005.