Beijing Dabeinong Technology Group, a Chinese producer of animal feed and seeds, announced it will spend 618 million yuan (€79 million) on a nationwide capacity expansion program.
According to the company, it will acquire and expand animal feed production lines in five cities for 318 million yuan (€37.5m), and another 300 million yuan (€35.5m) for the construction of a bio-pharmaceutical industry base by wholly-owned subsidiary, Beijing Zhongke Mufeng Bio-Technology.
Liaoning Dabeinong Technology Group intends to use 38 million yuan (€4.5m) to acquire Shenyang Yingda Technology, a company with annual animal feed production capacity of 60,000 tonnes.
Harbin Dabeinong Technology Group plans to build a new animal feed production plant for 53.93 million yuan (€6.37m) in Jiamusi, Heilongjiang province.
Beijing Dabeinong Technology Group will build new plants in Yichun and Chifeng, which are expected to be put into operations in 2013.
High demand exceeding the company's ability to supply is the reason for the expansion, and limited capacity has restricted development, said Dabeinong Technology Group.
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