Tonnies launches joint venture in China
German Tonnies Holding announced the signing of a joint venture with its partner Dekon Group for a slaughter and butchering centre in the Sichuan region. The unit will have an initial capacity of 2 million pigs, which will be expanded to six million pigs in a second phase. “We are proud to be starting a new chapter in our company history together with our partner, the Dekon Group” explained Tonnies 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.”
The abattoir is constructed according to the model of the Tonnies businesses in Germany. The total investment amounts to EUR 500 million, of which around EUR 150 million is accounted for by the slaughter and cutting centre. “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, after the signing.
“The demand for pork in China and many other Asian countries is great and will continue to grow in the coming decades”, said Clemens Tonnies, Managing Partner of Tonnies Holding. According to him, this is the next step in the company process of internationalization. “We want to make use the spirit of optimism in China and produce quality meat for the Chinese market” explained Ruff with regard to the market. The foundation stone for the production location is due to be laid in 2020.
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