Associated British Foods to form JV with agribusiness Wilmar’s unit
Category: #retail  By Pankaj Singh  Date: 2019-06-04
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Associated British Foods to form JV with agribusiness Wilmar’s unit

Associated British Foods, a UK-based food processing company recently announced a joint venture with Yihai Kerry Arawana Holdings Company, a unit of Wilmar International. With the venture, ABF plans to strengthen its presence in China. The 50-50 joint venture would acquire existing Chinese yeast & bakery ingredients activities of Associated British Foods subsidiary AB Mauri & leverage supply chain, local market expertise, sales and distribution network of Yihai, in China, reports source.

Cathal Duffy, Chief Executive, AB Mauri, was reportedly quoted saying that the joint venture is a significant opportunity to build foundation of yeast & bakery ingredients business in China. The company has a shared vision with Yihai Kerry Arawana to build a successful bakery business, added Duffy.

Kuok Khoon Hong, Chairman & Chief Executive, Wilmar, added that in addition of expanding range of quality ingredients, the collaboration will enable the company to leverage AB Mauri’s techniques & technologies, to provide better service to the baking industry in China.

As per authentic sources, Associated British Foods’ recent venture into China followed a 15 per cent drop in pre-tax profits in the recent half-year results, due to struggling sugar sales. In the previous year, sugar profits drooped 99 per cent from £881 million to £1 million due to lower EU contracted prices & poor crop in China.

Commenting on the results, Associated British Foods reportedly said that the company expects profit decline for the whole year to be reflected in the first half & for the second half to reflect profit from the second half of last year. Another goal is to operate profit for the full year.

As a part of the deal, a new yeast plant will also be installed and located jointly with Yihai -owned Wilmar International’s food processing factory in Taha industrial zone, China. The JV company, that is yet to be named, would be headquartered in Shanghai after completion of the regulatory approvals for the deal.

Source credits : https://www.foodmanufacture.co.uk/Article/2019/06/03/ABF-set-to-enter-into-China-joint-venture



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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