Neovia said it wants to consolidate its position on a Vietnamese market, and improve the coverage of its activities in the area. The new production site would help it increase its feed manufacturing capacities by 50,000 tons per year and consolidate its positions in the central region.
“This region is strategically located to effectively supply a growing market estimated at over three million tons of feed and expand the company’s export activities to South East Asia,” said Neovia.
It said it would make additional investments in the factory to continue to upgrade its facilities, increase its output capabilities, and offer products in line with the requirements of its livestock farming customers and distributors in the area.
In addition to the plant acquisition, Neovia said it is building a new factory in Ha Nam, creating a new production line at its Dong Thap facility, and expanding its storage capacities in Binh Duong.
The investment strategy is in line with its ambition to develop in Asia.
With a population of nearly 92.7m (2016) and 18.7 million tons of feed production, Vietnam is the world 14th largest feed market, mainly for swine, poultry, and aquaculture.
Neovia has had operations in that country for over 20 years; it currently owns five production sites, two research centers, six logistics platforms, two technical centers, and one analysis laboratory in Vietnam. Its operations there cover complete feed production, aquaculture, and pet food.
On the asset trial in Asia ..
The company has been asset building in Asia over the past two years.
In January this year, Neovia took a 60% stake in Chinese pet food player, Sanpo.
In May 2016, the French animal nutrition group acquired Philippines based feed manufacturer, Popular Feedmill Corporation (PFC), gaining feed manufacturing facilities in Cebu and Bulacan near Manila.
The Filipino company produces around 150,000 tons of pig, poultry, aquaculture, and pet feed annually.
In 2015, Neovia acquired an Indonesian laying hen feed producer, Welgro, in a move it said would allow it to grow its share of the poultry nutrition sector in that market.
That complete feed producer, located 100km from Jakarta, is a key player in the layer segment and has a manufacturing facility with 150,000-ton capacity.
Meanwhile, in April 2015, it announced a renewal of a ‘strategic’ alliance with South Korean poultry feed manufacturer, Jeil Feed, saying the alignment allows it ‘get the measure’ of a key growth market.