Peanut Market News April 11, 2018
China-based XingHe Holdings has entered into a joint venture agreement with Malaysian firms My Ocean Venture and VC Marine to venture into the seafood processing business, the former has announced.
Via 90%-owned subsidiary XingHe-Jefi, XingHe and its partners will establish a company called Sea Tuna Industry, to process and trade tuna and other seafood.
XingHe-Jefi will hold 52% of the shares, while My Ocean Venture and VC Marine will hold 35% and 13% respectively.
“The proposed JV is intended to unlock alternate business opportunities and to enable XingHe group to expand its business by having a new Malaysian-based business in tuna and seafood processing and trading to supplement its existing production, blending and marketing of peanut oil and other edible vegetable oil, all of which are based in China and hence to provide an additional income stream for XingHe group,” it said.
The Malaysian firms are involved in logistics, tyres and lubricants, so seafood is a new venture for all concerned.
XingHe-Jefi’s obligations include the provision of a suitable location for the establishment of a processing plant and securing the necessary licenses and approvals.
Meanwhile, the Malaysian partners will provide the technical know-how and expertise for the construction of the plant; procure a consistent supply of input for the plant; manage the delivery of finished products from the processing plant to customers; and procure all necessary food safety certifications.
The proposed joint venture is expected to be completed in the second quarter of 2018.