Tyson Enters Joint Venture in China
As part of its continuing international expansion, Tyson Foods Inc. has finalized a joint venture agreement involving vertically integrated poultry operations in eastern China. The agreement is with the Shandong Xinchang Group, one of China's leading poultry producers with estimated 2009 sales of $345 million. Once the deal receives the necessary government approvals, it will give Tyson 60 percent ownership in vertically integrated poultry operations consisting of Xinchang's existing assets and including the acquisition of a new poultry processing complex on the east coast of the Shandong Province. The name of the venture will be Shandong Tyson Xinchang Foods Company, Ltd.
"Poultry is the second leading meat protein source in China behind pork and continues to make significant gains in consumption," says Rick Greubel, group vice president and international president for Tyson Foods. "This joint venture will enable us to help meet China's appetite for poultry, which has been growing faster than the existing domestic supply."
Xinchang's business includes chicken and duck breeder and broiler farms, feed mills, and hatcheries. With the addition of a new chicken processing complex, the business also consists of four chicken processing facilities with a maximum capacity of three million birds per week and a duck processing facility capable of handling of 350,000 birds per week.
This will be Tyson's third joint venture poultry operation in China. The company also has majority interest in a chicken further processing facility in Zhucheng, Shandong, and majority interest in a vertically integrated poultry operation being developed in Haimen City in the Jiangsu Province near Shanghai.
"Poultry is the second leading meat protein source in China behind pork and continues to make significant gains in consumption," says Rick Greubel, group vice president and international president for Tyson Foods. "This joint venture will enable us to help meet China's appetite for poultry, which has been growing faster than the existing domestic supply."
Xinchang's business includes chicken and duck breeder and broiler farms, feed mills, and hatcheries. With the addition of a new chicken processing complex, the business also consists of four chicken processing facilities with a maximum capacity of three million birds per week and a duck processing facility capable of handling of 350,000 birds per week.
This will be Tyson's third joint venture poultry operation in China. The company also has majority interest in a chicken further processing facility in Zhucheng, Shandong, and majority interest in a vertically integrated poultry operation being developed in Haimen City in the Jiangsu Province near Shanghai.