November 6, 2006

 

China's New Hope Group expands feed operations overseas
 

 

China's New Hope Group is expanding its overseas feed operations as China's feed industry recovers from its recent slump.

 

New Hope's Board of Directors has approved five new feed-related projects, two of which is in south-east Asia and one in south-Asia with total investments of RMB170 million (US$21.6 million). 

 

The investment includes US$4.2 million in a wholly owned subsidiary company in Bangladesh "New Hope Bangladesh Pte Ltd" with expected production of 200,000 tonnes of livestock and aquaculture feeds a year.

 

Another project included in the investment would be a US$4.95 million in Indonesia's Jakarta and Surabaya, each capable of 200,000-tonne yearly production.

 

New Hope is also divesting itself of the few chemical processing businesses it possesses to focus solely on agriculture.

 

Besides the expansion abroad, New Hope is also working on two feedmill projects in China: one in Hebei's Xingji and the other in Hainan. The company would be investing RMB 35 million (US$4.4 million) in the Xinji plant, with initial production capacity of 200,000 tonnes and expected sales of RMB 300 million (US$38.14 million) after a year in operation. Hainan's operation is expected to cost RMB 27.5 million (US$3.5 million) and is expected to be completed in six months with expected annual sales of RMB 400 million (US$50.7 million).