The agreed purchase price is approximately €40 million. The revenue in 2010 was € 65 million.
This acquisition will provide Skretting, the Nutreco aquaculture feed business, with a production base in China – world’s number 1 aquaculture feed market.
The acquisition is fully in line with the strategy to capitalise on Nutreco’s leading fish feed positions and diversify by expanding in new regions and into feed for other species and shrimp.
Shihai Co supplies a growing market and produced approximately 100,000 tonnes of fish and shrimp feed in 2010, a year in which it commissioned a new feed plant with a capacity of approximately 150,000 tonnes.
The new plant is constructed and equipped to a high standard and is capable of operating to Skretting specifications.
Shihai Co employs 300 people. Following completion of the acquisition, Skretting continues growing the business, supplying fish feed for species such as shrimp, various marine fish species, tilapia, snakehead and catfish.
Market growth 10% per year
The fish feed market in China is estimated 8.6 million tonnes. The last five years this market has grown by more than 10% per year and growth is expected to continue supported by Chinese authorities and strong domestic demand for seafood.
Shihai Co, situated in the Pearl River Delta in the Guangdong Province, has approximately 5% of the high end fish feed market in the south of China and has shown an annual growth rate of approximately 23% during the last five years.
Skretting has gained insights into the aquaculture market of China over the past four years through a toll milling operation.