Frontmatec to invest in China
Frontmatec has entered into an agreement to acquire Jining Xinglong Food Machinery Manufacturing Co., Ltd. (“Xinglong”), a leading supplier of equipment to the red meat industry in China. The transaction will provide Frontmatec with market access in China and in addition a local production setup dedicated for the Chinese market. Furthermore, Xinglong will benefit from transfer of advanced technology from Frontmatec.
“We have been in close dialogue with Xinglong for nearly one year, and we are very impressed with the development of the company and the current management team," CEO Henrik Andersen said. "Xinglong has strong capabilities within the industry and close relationships with the largest customers in China. The acquisition enables Frontmatec to strengthen our market position and to be able to tap into the large growth potential in China.”
Founded in 2001, Xinglong is a reputable Chinese slaughtering equipment enterprise, offering cost-effective equipment and technologies adapted to livestock and poultry slaughtering in China and other developing countries.
“I am very pleased about the partnership agreement with Frontmatec," Founder of Xinglong Mr. Wang said. "I am confident that the envisioned combination of the technologies and know-how of the two companies will lead to a prosperous future”
China is the world’s single largest market accounting for approx. 50% of all pigs slaughtered globally. The market is expected to experience strong growth going forward driven by i) an increased demand for more automated and high speed solutions and ii) an increased focus on food safety.
“This is another big step forward for Frontmatec, and we are happy to welcome Xinglong into the Frontmatec family," Chairman of the Board Arne Vraalsen said. "I am convinced that both companies can benefit from each other and that the combination will result in a much stronger value proposition towards our customers, which will fuel future growth”
Going forward, Xinglong will continue to serve the Chinese market from its current base in Jining under its current brand name. However, in order to accelerate the sales of more advanced solutions in China, Frontmatec will support Xinglong with relevant technology and competences.
The completion of the transaction is subject to final closing, which is expected to happen within the coming months.