Chinese pork processor Shandong Delisi has announced plans to invest in a production venture with Australian meat processor and packer Yolarno Pty.
Yolarno is the parent company of Bindaree Beef. Last month, reports surfaced Shandong Delisi was taking a 45% stake in Bindaree Beef for A$140m, which the Chinese group confirmed when it announced the meat processing project yesterday (27 November).
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The venture will be in Qingdao, with the two companies investing a combined CNY300m (US$47m).
The new project will see the construction of a cold storage facility and a processing plant in the city. Shandong Delisi said it expects sales of CNY2bn and profit of CNY120m a year from the venture.
Shandong Delisi said the investment would help it expand its business in high-end beef products and increase profitability.
The company added the project would generate business from neighbouring Asian markets and would allow for the groups to create a “new product mix” in China.
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