SPRINGDALE, Ark. – Tyson Foods Inc. announced Wednesday that it has finalized a joint venture agreement involving vertically integrated poultry operations in eastern China.

The agreement with Shandong Xinchang Group will give Tyson 60 percent owners hip in poultry operations consisting of Xinchang’s existing assets and include the acquisition of a new poultry processing complex on the east coast of Shandong province. The name of the venture will be Shandong Tyson Xinchang Foods Company Ltd.

The deal will need government approval.

“Poultry is the second leading meat protein source in China behind pork and continues to make significant gains in consumption,” said Rick Greubel, group vice president and international president for Tyson Foods. “This joint venture will enable us to help meet China’s appetite for poultry, which has been growing faster than the existing domestic supply.”

Xinchang’s business includes chicken and duck breeder and broiler farms, feed mills, and hatcheries. With the addition of a new chicken processing complex, the business also consists of four chicken processing facilities with a maximum capacity of three million birds per week and a duck processing facility capable of handling of 350,000 birds per week. Most of the chicken and duck products are sold frozen through foodservice and wholesale channels. A small percentage is sold through retail outlets under the Xinchang brand and under private label.

Other Tyson ventures in China include a majority interest in a chicken further processing facility in Zhucheng, Shandong, and a majority interest in a vertically integrated poultry operation being developed in near Shanghai.

Source: Tyson Foods Inc.