Recently, Tangrenshen Group and Tibet Hemu Investment Consulting Co.,Ltd signed “strategic cooperation framework agreement”. According to the agreement, Tibet Hemu Investment will transfer his 40% equity of Shandong Hemei Group to Tangrenshen Group, and Tangrenshen Group intend to use its own funds to acquire Shandong Hemei Group with no more than RMB 486 million, to accelerate its feed business development in Shandong Province.

It was reported that Tibet Hemu Investment Consulting Co., Ltd is the controlling shareholder of Shandong Hemei Group, holding 60% stake, and after the acquisition is completed, Tangrenshen Group will become the largest shareholder of Shandong Hemei Group. Statistics show that Shandong Hemei Group is a key agricultural leading enterprise, established in 2003 and is a large scale feed processing group, which has 24 feed mills in Shandong and the feed production capacity is more than 350 million tons and has more than 40 branches in Hebei,, Henan and Shanghai province.

Mr. Sun Shuangsheng, board secretary told reporter that after holding Shandong Hemei Group will accelerate its feed system through production base, network system and sales support, and expect the feed income will exceed RMB 10 billion. According to the mid year report of Tangrenshen Group, the sales revenue achieved 2.76 billion RMB, of which more than 75% pig feed while poultry feed had a very small proportion.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email  michael@boddingtonconsulting.com 

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