Tönnies enters into joint venture in China

The German meat concern Tönnies and Dekon Group are starting a joint venture in Sichuan, a province in central China. The parties jointly want to set up a slaughterhouse, with an associated sales point, in the region.

The plan is that the slaughterhouse will initially slaughter about 2 million pigs per year, although this should be expanded to about 6 million pigs per year in due course. In addition, both parties report that the slaughterhouse will be set up on the basis of the model of the slaughterhouses of Tönnies in Germany. The investment amounts to €500 million, of which €150 million is intended for the slaughterhouse. Construction is planned to start in 2020.

'Good time to invest'
Andres Ruff, the CEO of the German slaughter company Tönnies, believes that now is the right time to invest in the Chinese market. "This market is currently in transition as the African swine fever outbreaks have severely curtailed the country's pork stocks, so there is a need for more."

Clemens Tönnies, from the eponymous concern, agrees. "Demand for pork is high in China (and other Asian countries) and is expected to continue to grow in the coming decades. This joint venture is the next step in our internationalization."

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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