AGRAVIS is investing in Vietnam together with Danish partners
The Danish company Vilomix Holding is investing in a premix and vitamin production plant in Vietnam, and is thereby getting a foot in the door to one of the up-and-coming growth markets. Upon teaming up with the Hung Vuong Corporation well known in Vietnam, the Danes plan to set up a modern factory with a production capacity of initially 20,000 tonnes. Vilomix Holding will hold 70 percent of the shares, and Hung Vuong 30 percent. The AGRAVIS Group, in turn, has a 25 percent share in Vilomix, the Danish DAVA Group 75 percent.
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The Hung Vuong Corporation is quoted on the stock exchange in Vietnam, has its corporate headquarters in Ho Chi Minh City, and has previously been operating as a food producer, especially in the sector of fish farming and exporting pangasius fish.
“The market for pork is increasing in Vietnam. According to the chairman of the shareholders’ meeting of Vilomix Holding, Christian Junker, and AGRAVIS Chief Executive Dr Clemens Große Frie “that was the motivation, together with the Hung Vuong Corporation, to invest in a new premix and vitamin production plant in the region of Lang”. “The opportunities in Vietnam are manifold and very promising. The Asian market is developing rapidly and offers Vilomix a perfect access window to the demand side, as well as the opportunity to grow into one of the international players for premixes and vitamin products.”
Amount invested is within the high single-digit million euro range
The factory (construction is expected to commence in the first half of 2016, with completion scheduled for April 2017) is supposed to be integrated into the growing compound feed activities of Hung Vuong Corporation and in future produce special feed in the form of premixes and vitamin products. The amount invested falls within the high single-digit million euro range.
Vilomix is a global producer of special feed and latterly realised a turnover of over € 300 million. “And that with above-average profitability,” Große Frie emphasises.
Well-considered steps into the Asian market
For AGRAVIS this is the second well-considered and gradual step into the Asian market. At the end of last year the company announced that it would acquire a 33 percent shareholding in the international trading company Bögel. AGRAVIS will thus gain access to the direct procurement of feed components, such as palm, palm oil and palm kernel expeller, as well as to procurement markets in Asia. The reasons for acquiring a shareholding in Bögel include AGRAVIS continuing its strategic international growth together with the internationally operating company Wilmar – one of the leading agricultural groups in Asia, based in Singapore, and the world’s biggest refiner and marketer of palm oil – and two executive partners Jens Behncke and Chris Matzen.