March 7, 2006

 

China's New Hope investing RMB5 billion in next five years

 

 

China's largest feed producer, New Hope Group is looking to invest RMB5 billion within the next five years to expand operations and go into farm supply chain management and meat processing, said the group's chairman Liu Yonghao on Mar 4.

 

He said the plan may be funded by the domestic or overseas listing of part of his group. Currently, only part of its feed operations is listed under A-share firm New Hope Agriculture.

 

New Hope's aim is to be the first Chinese firm to establish an integrated and globally competitive agribusiness. Liu said the group wants to be China's equivalent of Smithfield Foods and Tyson Foods.

 

The group is already in talks with Smithfield and Tyson about possibly cooperating in China. Smithfied is the world's largest pork processor and pig raiser while Tyson is the world's largest chicken processor.

 

Liu said the investments will enable the group to double its revenue to RMB50 billion in five years, from about RMB20 billion last year.