Buhler buys flour improvement business in China
Although equipment remains the core focus at Buhler, the company is branching out into formulation to provide additional services to clients and improve its knowledge of the value chain.
This strategy led to the creation of the Nutrition Solutions business a couple of years ago and informed the latest acquisition of flour improvement specialist Bangsheng Bio-Technology.
Buhler did not disclose the financial details of the takeover but revealed that the Chinese producer of flour improvers for speciality flours generated sales revenue of CHF 10m (€7.18m) in 2009.
Consistency challenge
A spokesperson for Buhler said that Guangzhou-based Bangsheng is positioned in a very promising sector because demand for improvers is particularly high in emerging markets like China. This, the company representative said, is because there is a high volatility in grain quality so flour improvers play a key role in ensuring the consistency of finished products.
Contact list
Although Buhler has been present in China for over 25 years, the company said the latest acquisition could also open up new opportunities to further build its contact list. Buhler said Bangsheng, which was founded in 1992, entertains excellent contacts with all important flour mill operators in China.
Going forward, Roy Gao, who has been active for Buhler in China up to now, takes over as the general manager and will continue to be supported by the previous owner and management team. For the time being, Bangsheng will retain its traditional name in the market.
The teams at Nutrition Solutions in Wuxi, China, and Uzwil, Switzerland, will work with their new colleagues at Bangsheng to develop new products and push to increase market share.
