Neovia to acquire production site in Vietnam
Deal will help it meet its goal of developing business in Asia
Neovia has entered into exclusive negotiations to acquire a production site in Quy Nhon, located in the Binh Dinh province in central Vietnam. The company wants to consolidate its position on a Vietnamese market that it knows well, improve the coverage of its activities in the area, and confirm its goal of developing its business in Asia.
Neovia has had operations in Vietnam for more than 20 years. The company employs 850 people and has five production sites, two research centers, six logistics platforms, two technical centers, and one analysis laboratory in the country. The company operates in all of its seven activities, mainly in complete feed production, aquaculture, and pet care. With a population of nearly 100 million and 18.7 million tons of production, Vietnam is the world’s 14th largest feed market, mainly for swine (world’s fifth largest), poultry, and aquaculture. With more than 20 years of experience in the country, Neovia currently increases its investments to strengthen its industrial and commercial coverage and support the growth of the Vietnamese market (more than 20 percent in 2016).
Neovia supports Vietnamese growth
The acquisition project of the production site in Quy Nhon, Binh Dinh province (on the coast in central Vietnam, about 600 km from Ho Chi Minh City) will help Neovia increase its production capacities by 50,000 tons per year and consolidate its positions in central Vietnam. This region is strategically located to effectively supply a growing market estimated at more than 3 million tons of feed and expand the company’s export activities to South East Asia.
Neovia will make additional investments in the factory to continue to modernize its facilities, increase its production capacities, and offer products in line with the requirements of its livestock farming customers and distributors in the area. In addition to this major project, Neovia is strengthening its industrial tools and service offering in general by building a new factory in Ha Nam, creating a new production line at the Dong Thap site, and expanding its storage capacities in Binh Duong.
Neovia is a world leader in animal nutrition and health with a turnover of EUR1.7 billion (US$2 billion) and operates in 28 countries. The group strategy is characterized by a strong investment in populated areas with a strong developing purchasing power such as South America, Africa, and especially Asia.
For H. de Roquefeuil, CEO of Neovia, “these new investment projects in Vietnam illustrate our commitment to consolidate our historical positions and to pursue targeted external growth operations. Through these projects and the acquisitions we have made in Asia over the past two years (Welgro in Indonesia, Popular Feedmill Corporation in The Philippines, and the Sanpo acquisition project in China), Neovia is strengthening its coverage in the Asian market in its seven activities to provide innovative and competitive solutions that locally respond to the growing needs of populations.”