Leong Hup International Berhad, one of the largest fully integrated producers of poultry, egg and livestock feed in Southeast Asia, acquired an aquafeed feed mill in Vietnam, including its plant, equipment, machinery and motor vehicles, for a total consideration of approximately RM67.03 million ($15.8 million).
Strategically located within the thriving Mekong Delta region, the acquisition represents the regional integrated poultry operator’s diversification into aquafeed in Vietnam. Currently, LHI and its subsidiaries in Vietnam produce a wide range of feed products, including those for parent stock chickens, broiler chickens, layer chickens, color birds, ducks, cattle, goats, swine and quail. The asset, which currently produces only aquatic feed, has a production capacity of up to 118,800 tons of aquafeed per year, while the company has plans to enhance the asset’s capacity and begin poultry feed production by the end of 2020. The production of aquafeed complements and extends the offerings of the company’s range of feed products offered.
“Vietnam is one of the company’s burgeoning markets in Southeast Asia and we continue to sharpen our focus on expanding our growth in this region. This acquisition presents us with an opportunity to introduce feed products to capture more pockets of the region’s rising protein consumption and enables the company to strengthen our market position in Vietnam, particularly around the southern region,” said executive director and CEO of LHI, Tan Sri Lau Tuang Nguang.
In its recently announced unaudited consolidated financial results for the fourth quarter of 2019, the group had reported a 15.6% gain in revenue from Vietnam against the same quarter a year ago, led by feed sales volume. The latest acquisition is expected to drive the group’s feed sales volume further.
