Dabeinong Technology to further invest capacity expansion
Chinese feed manufacturer Beijing Dabeinong Technology Group plans to use 128 million yuan (€15.2m) of the excess funds raised from its initial public offering to expand its pig feed production capacity.
The company will invest the total amount in three pig feed production facilities of 120,000 capacity each in Yunnan province, Shangqiu, Henan province, and Gansu province.
Construction on all three production facilities will start in the second half of the year. The facilities are expected to be put into operations in the first half of 2013.
According to Dabeinong Technology, the investments to expand and improve its pig feed production capacity will help to maximize returns on the use of the excess funds raised from its initial public offering.
The company went public in March 2010, and raised a total of 2.02 billion yuan (€239m), of which excess funds raised accounted for 1.55 billion yuan (€183m).
In addition, Dabeinong filed that its 180,000-ton pig feed production facility in Maoming, Guangdong province, will now be executed by its wholly-owned subsidiary, Guangzhou Dabeinong Technology and its sub-subsidiary, Maoming Dabeinong Technology, instead of Maoming Feeds.
In June Dabeinong said it plans to set up eight feed mills with a combined capacity of 1.83 million tons, in order to meet rising market demand for high-end pig feed.
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