Danish company DLG Group is establishing a partnership with Chinese feed manufacturer PUAI Feed Group, with the Danish government's Investment Fund for Developing Countries as a co-investor. The total ownership share in the Chinese company is 25%.

The investment is intended to give DLG access to the Chinese market where Danish pork production know-how in particular has great potential but also in terms of purchasing where a wide range of important Chinese raw materials and ancillary substances can boost DLG's competitiveness in the European market.

PUAI Feed Group has 1,500 employees and seven factories in China. The present owners took over the company in 2001.The level of production is currently 291,000 metric tons per year, and the group is experiencing excellent growth with continued expansion in the years ahead.

DLG is one of Europe's three largest agricultural companies and will contribute its know-how in the production of quality feedstuffs and vitamin and mineral compounds, but also quality and food safety, while production and sales processes will be managed by PUAI Feed Group.

"From DLG's perspective, our entry into the Chinese market is perfectly in keeping with our overall strategy, where one of our objectives has been to gain a foothold on the Chinese market. This agreement means that we have succeeded in doing so and we have great expectations for it. The agreement expands DLG's position as a significant international player," says Kristian Hundebøll, Group CEO of DLG.