November 23, 2006 

 

China's New Hope Group makes a return to livestock industry

 

 

China's agriculture giant New Hope Group plans to return to the livestock industry after several years' market expansion in other products.

 

New Hope Group would devote the major part of its RMB1 billion investment in the livestock sector while a small part of it would be spent on the chemical sector, Liu Yonghao, director of New Hope Group said.

 

The investment would be concentrated into the middle-west region of China. New Hope is targeting to be a world class enterprise in the livestock industry, Liu said.

 

Liu Yonghao said New Hope Group would foster more cooperation among the industry, as opposed to the previous practices of each company researching and acting on their own.

 

In 2005, New Hope successfully acquired top poultry feed and poultry product processor Liuhe through a joint-stock holding agreement. A similar arrangement with Shiyang this year would further strengthen the company's position in the poultry feed and poultry product sector, the company said. This arrangement meant that New Hope has acquired the cooperation of 7 national-scale companies in total.

 

New Hope said it would invest up to US$200 million in the next few years, expanding its 6 existing factories and building 4 new ones. New Hope also has operations in South-East Asia.