February 20, 2014

Nutreco opens premix plants in Vietnam and Indonesia

Nutreco is expanding its presence in Asia with an increased focus on the production of premixes and farm minerals, with two new state-of-the-art plants in Ho Chi Minh City in Vietnam and East Java in Indonesia, along with the remodel of its Chinese plant in Xiangtan, Hunan.

The Vietnamese facility will be operational in the second quarter of 2014 and the plants in Indonesia and China during the first quarter of 2015.

The opening of Nutreco's fourth and fifth premix facility in Asia and the remodelling of the Xiangtan plant are part of the company's strategy of expanding its presence in growth geographies such as Asia.

With existing premix facilities running at full capacity, the global leader in animal nutrition and fish feed sees a need for two additional plants. The expansion will allow Nutreco to better serve Vietnamese and Indonesian farmers and feed mills through enhanced nutritional services and faster response times. Both plants will produce premixes and farm minerals. In Vietnam, young animal feed concentrates will be produced.

The plant in Xiangtan was constructed in 1999 and designed primarily as a compound feed facility. Nutreco is carrying out a complete remodel of the site to meet the growing demand for high quality, sustainable animal nutrition products in Central and Southern China. The production will shift from compound feed to premixes, farm minerals, piglet feed and feed additives.

The total investment amounts to €15 million (US$20.6 million) and is part of Nutreco's strategy to improve profitability by providing innovative and sustainable nutritional solutions. The effort will be realised trhough a focus on higher value added portfolio and expansion into the growth geographies of Latin America, Russia, Asia and Africa.