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April 20, 2015

China and Denmark

Tongwei and BioMar Joint Feed Mill Ventures

 

On April 17, 2015, the BioMar Group (Denmark) signed a Memorandum of Understanding with Tongwei Co., Ltd. (China) to produce and sell high performance aquafeeds in China.  The product range for the new joint venture will include starter and growout feeds for marine and fresh water species such as sea bass, sea bream, cobia, turbot, bass, grouper, trout, sturgeon, tilapia, eel—and shrimp.  The goal of the joint venture is to become one of the leading suppliers of high-performance aquafeeds in China and then to expand into other Asian markets.  BioMar and Tongwei will each hold 50% of the joint venture.

 

The two companies have agreed to build an aquafeed mill in China with an annual capacity of over 100,000 metric tons, scheduled to start operation in 2016.  After that, BioMar and Tongwei plan to build 35 similar or larger feed mills in China and expand sales to other countries in Asia.

 

Tongwei Co., Ltd., operates nationwide in China as well as in Southeast Asia with over 100 branches and subsidiary companies.  In 2014, it produced around 4,000,000 metric tons of feed of which 2,500,000 tons were aquaculture feeds.  This makes Tongwei the world’s largest aquafeed manufacturer as well as a major livestock and poultry feed producer.  It has held the leading position in the Chinese aquafeed industry for the last 22 years, and it is expanding rapidly into aquaculture research, aquaculture, animal health care and food processing.  Its annual revenues exceed $1.6 billion.

 

Founded in Denmark in 1962, the BioMar Group A/S is a leading supplier of feed to the aquaculture industry, ranking among the top three suppliers in the field of high performance feeds worldwide.  Currently BioMar has 11 mills, producing feed for more than 30 different species including salmon, trout, sea bass, sea bream, eel, tilapia, sturgeon—and shrimp.  BioMar feeds are sold in more than 60 countries.  In 2014, it produced close to one million metric tons of aquatic feed that generated revenues of $1.2 billion.  BioMar is fully owned by Danish Schouw & Co., which is listed on the NASDAQ Copenhagen Stock Exchange.

 

Source: Aquaculture Directory.  BioMar Joins Forces with Tongwei in China and South East Asia.  April 17, 2015,

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