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

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



About Author

Pankaj Singh

Email: [email protected]   

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...

Read More

More News By Pankaj Singh

US buys all of the global supply of Gilead’s COVID-19 drug remdesivir
US buys all of the global supply of Gilead’s COVID-19 drug remdesivir
By Pankaj Singh

While top-notch companies are racing to develop a vaccine for COVID-19, it looks like the United States has secured almost all of the world’s supply of interim drug remdesivir to treat patients with COVID-19.

...

Potential COVID-19 vaccine by Bharat Biotech to enter clinical trials
Potential COVID-19 vaccine by Bharat Biotech to enter clinical trials
By Pankaj Singh

Bharat Biotech International, a leading Indian biotechnology company, has reportedly announced that its potential coronavirus vaccine, Covaxin, has received Drug Controller General of India (DCGI) approval to start hum...

Seattle Genetics reveals positive data from tisotumab vedotin trial
Seattle Genetics reveals positive data from tisotumab vedotin trial
By Pankaj Singh

Seattle Genetics, Inc., a renowned biotechnology firm that focuses on developing antibody-based cancer treatments, has recently revealed positive topline data from its Phase 2 clinical trial (innovaTV 204) assessing ti...