UK-based food group Associated British Foods (ABF) has entered into a joint venture with Hebei Tian Lu Sugar Group, a sugar producer based in northeastern China.
The new venture, which will trade as Bo Tian, is still to gain Government approval but clearance is expected by the end of September.
ABF said Tian Lu will contribute its existing beet sugar business to the joint venture and ABF will contribute some GBP70m (US$140m) to fund plans for future development and expansion. ABF will hold 51% of the joint venture, while Tian Lu will control the remaining 49%.
“This acquisition represents another exciting development for us in China,” said ABF’s chief executive officer George Weston. “Our experience in operating cane sugar factories in southern China, combined with our skills as the lowest cost beet sugar producer in Europe will enable us to introduce improvements quickly and efficiently to China’s beet sugar industry.”
Tian Lu operates four beet sugar factories in Wangkui and Yi’an in Heilongjiang province, Zhangbei in Hebei province and Qianqi in Inner Mongolia.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData