December 27, 2019

Xinghe to expand Malaysia aquaculture operations in 2020

The company will expand its marine shrimp aquaculture operations, focusing on Vannamei (white leg shrimp or king prawn), with 30 million MYR (~US$7.2 million; 1 MYR = US$0.24) expected revenue to its top line, reported New Straits Times Malaysia.

Xinghe aims to acquire new farms and breeding capacity for its expansion.

Stephen Ng Min Lin, chairman of Xinghe said the projected additional revenue is based on the RM18 (~US$4.36) to RM20 (~US$4.84) per kilogramme minimum sale price.

The company is exploring selling Vannamei domestically through its own brand, retail or e-commerce as it looks to manage the whole production chain.

The company is also planning to explore frozen tuna and other fish species to meet a growing ready-to-eat demand in Malaysia.

Pegagau Aquaculture, based in Sabah, Malaysia was acquired by Xinghe in December 2019. Pegagau is one of the top three prawn aquaculture companies in Malaysia and has been breeding Vannamei for more than 10 years.

Xinghe currently produces 2,000 tonnes of Vannamei annually, with all of its products exported unpeeled or frozen to China, South Korea and Vietnam.

-      New Straits Times Malaysia