Vilomix to build a factory in Vietnam
Premix and vitamin group Vilomix has signed a deal with Vietnamese food company Hung Vuong Corporation to build a new premix and vitamin factory in Lang An province, Vietnam.
Vilomix will own 70% and Hung Vuong 30% of the factory, production from which is intended to meet the Vietnamese company’s growing focus on pig production, and for sale to the rest of the Vietnamese market.
Vilomix CEO, Peter Iversen, believes there is major potential in the deal.
“We are highly satisfied with being able to set up business in Vietnam - a very interesting market I believe we have a lot to offer. The country is six times the size of Denmark, with a population of 90 million. The demand for meat is growing and Danish quality products and know-how within animal production are therefore in demand in the region. We believe there is massive potential in the deal,” says Iversen before adding:
“Hung Vuong Corporation represents a strong partner to us - a well-run food company in growth with its primary focus on fish farming and export. The company currently produces 1.5 million tons of fish feed and has high ambitions within pig production, aiming to have production based on 100,000 sows with Danish genes by 2020. Hung Vuong is therefore in the process of building a new feed factory with 500,000 tons of capacity. Our new factory will supply premix and vitamins for existing and new feed production facilities,” he states.
Hung Vuong expects to expand its feed production to a total of 3 million tons by 2020.
If all approvals and permits fall into place according to plan, building of the new factory is expected to start in May 2016 and be ready for production by April 2017. Vilomix has formed a new subsidiary in Vietnam to manage the building process under the name of Vilomix Vietnam LLC.
Chairman of the Board of Vilomix Holding A/S, Christian Junker, is delighted with the deal and sees it as the first step towards greater internationalisation of Vilomix.
“The deal we have signed in Vietnam means that we can now test ourselves on a remote market for the first time, where the commercial opportunities are enormous. The Asian market is growing fast and very attractive for Vilomix products due to the rapid growth in population. This investment can actually be the first step towards transforming Vilomix from an international to a global player in the premix and vitamin sector, which is dominated by major global corporations,” says Junker, and continues:
“Vietnam currently has over 4.2 million sows - that’s 4 times more than in Denmark - and there are 225 feed producers in Vietnam. It’s these very producers that we want Vilomix Vietnam to supply products and services to in partnership with Hung Vuong.”
Hung Vuong Corporation was founded in 2003 and currently has a workforce over 17,000 strong. The company turned over around DKK 8 billion in 2015 and primarily focuses on breeding plus export of pangasius fish, including to Denmark. Head office is in Ho Chi Minh City with production facilities in Tien Giang province and the company is listed on the stock exchange.
Vilomix Holding A/S and Hung Vuong Corporation have been in negotiation since autumn 2015.