Agribusiness Louis Dreyfus Company (LDC) and Chinese feed company Guangdong HAID Group Co. Ltd. broke ground this Wednesday on a new feed mill in Tianjin, China that the two companies will operate through a joint venture, Tianjin Rongchuan Feed Co. Ltd.
Slated to open by mid-2020, the facility will be built on a 53,000 m2 piece of land and feature a capacity of 300,000 mt/yr upon completion. The site will focus on the production of high-end aquatic feeds and fermented soybean meal.
“With the increase in aqua product consumption, high-end aqua feed production has become an important part of our growth plans for the coming years,” Hua Xue, chairman of the Guangdong HAID Group, said in a press release. “This joint venture with one of the world’s leading merchants and processors of agricultural goods offers and excellent opportunity to contribute to our mutual growth plans.”
The Tianjin facility is planned to be the largest aqua feed mill in North China, according to the companies, and will combine soy crushing and feed production under one roof.
“This initiative is part of our strategy to diversify downstream into more value-added products, as we increasingly integrate along the value chain,” LDC Group Chief Executive Officer Ian McIntosh said in a statement. “HAID is a key player in animal nutrition, and our complimentary expertise is ideal to develop together in this arena.”