DuPont and Shineway agree on soy protein JV
with Shineway Group, China's largest meat and sausage producer, to
establish a soy protein joint production venture with a total
investment of €61 million.
DuPont Protein Technologies International has signed an agreement with Shineway Group, China's largest meat and sausage producer, to establish a soy protein joint production venture with a total investment of 500 million yuan (€61 million).
The new company, located in Henan province, where Shineway is based, will focus on soy protein processing, health food production and crop planting, according to the agreement signed on 11 October.
Wan Long, chairman and president of Shineway, told yesterday's Beijing Xiandai Shangbao (Beijing Modern Business News) that DuPont would own 60 per cent of the venture and Shineway 40 per cent.
The soy protein project will include three phases. Liquid protein will be produced during the first phase exclusively for the use of Shineway; protein powder in the second phase, which will be both supplied to Shineway and exported; and health food and crop planting will be the third phase, said Wan.
The establishment of the venture will expand Shineway's business scope from meat processing to grain processing and expand its international market.
Stephan Tanda, president of DuPont Protein Technologies, said that the new venture would adopt DuPont's technology, equipment and management experience and take advantage of Shineway's marketing and sales strength in China.
DuPont has established wholly owned protein facilities in Yunmeng county, Hubei province and Zhengzhou, Henan province. Their products are supplied to both domestic companies and those in the Asia-Pacific region.
DuPont values this year's global food additive market at $20 billion (€20.5bn), with annual growth of 3 per cent to 5 per cent; and the sales of the global market for health food additives at nearly US$3 billion, an increase of 15 per cent from last year.
