Danish premix and vitamin group, Vilomix, has signed an agreement with Vietnamese food company, Hung Vuong Corporation, to build a new premix and vitamin factory in the Lang An province of Vietnam.
Vilomix said it will own 70 percent of the factory while Hung Vuong is entitled 30 percent of the facilities, that is intended to produce premix and vitamin for Hung Vuongs growing focus on pig production as well as the general Vietnamese market.
CEO at Vilomix, Peter Iversen, finds great perspectives in the agreement and the new venture in Vietnam:
“We’re very satisfied with establishing Vilomix in Vietnam, which I see as an interesting market with a lot to offer. The country is six times bigger than Denmark and has a population of 90 million people. There’s a growing demand for meat. Our Danish quality products and know how in animal production is therefore highly sought in the region”, Peter Iversen explains in a press release and adds:
“Hung Vuong Corporation is a significant partner. It’s a well managed food company in growth with their main focus on fish farming and export. At the moment they produce 1.5 million tons of fish food. Now they have great ambitions in pig production and have set up goals to have production based of 100.000 sows with danish genetic. Hun Vuong is therefore in the process of building a new feed factory with a capacity of 500.000 tons” he says.
It’s expected that the Hung Vuong Corporation will expand its production of feed to 3 million tons in 2020.
If approvals and permits are in place at time, it’s expected that the construction of the factory will begin in May 2016 already and it should be set to produce in April 2017. In connection to the construction Vilomix has established a subsidiary company under the name of Vilomix Vietnam LLC.
Chairman of the Board of Vilomix Holding A/S, Christian Junker, is pleased about the agreement which he sees as early step into an internationalization of Vilomix:
“With this agreement we’re able to test Vilomix in a distant market with great commercial opportunities. Because of the huge growth rate of the population in the region, the Asian market is highly an attractive market for Vilomix products. This investment is very likely the first step towards changing Vilomix from an international to a global player in the premix- and vitamin industry, which is dominated by global players”, Christian Junker says and adds:
“Vietnam today has more than 4.2 million sows, which is 4 times more than Denmark, and there are 225 feed producers in Vietnam. Those are the producers that we, in corporation with Hung Vuong, wish to provide with products and services”, he ends.
Hung Vuong Corporation was established in 2003 and has more than 17.000 employees. The company, that had turnover on around 8 billion DKK’s in 2015, is mainly focused on farming as well as exporting of pangasius fish. The listed company is based with a head office in Ho Chi Minh City and keep production facilities in the Tien Gian province.
Vilomix Holding A/S and Hung Vuong Corporation have been in contact since the autumn of 2015.