The partners will set up a new abattoir and associated butchering business for pork in the Sichuan region. The abattoir is designed for around two million pigs per year, eventually expanding to six million pigs, and is constructed according to the model of the Tönnies businesses in Germany. The total investment amounts to €500m, of which around €150m is accounted for by the slaughter and cutting centre. The foundation stone for the production location is due to be laid in 2020.
“We are proud to be starting a new chapter in our company history together with our partner, the Dekon Group,” said Tönnies CEO Andres Ruff, during the signing at the Western China International Fair. “With our competence in the slaughter and butchering of pigs and our knowledge of the prerequisites, safety and hygiene in food production, we can further consolidate pork production for the Chinese market.”
Ruff added that this is a good time to invest in the Chinese market as Tönnies believes the Chinese food market is “currently in a state of transition” due to African Swine Fever cutting stocks in parts of the country, and micro-businesses and backyard farms being replaced by agricultural companies whose biosafety corresponds to western-European standards. “We want to make use the spirit of optimism in China and produce quality meat for the Chinese market,” he said.
“In Sichuan, the first plant is being constructed in compliance with the European standard for pork products. From breeding to slaughtering to processing, we will achieve complete integration in food production,” said Wang Degen, CEO of the Dekon Group.
“The demand for pork in China and many other Asian countries is great and will continue to grow in the coming decades,” said Clemens Tönnies, managing partner of Tönnies Holding. “This joint venture is the next step in our internationalisation. We are bringing our knowledge of food production based on German standards to the world and strengthening the quality and safety of the supply in China.”