DENMARK, Kolding. Frontmatec has entered into an agreement to acquire Jining Xinglong Food Machinery Manufacturing Co., Ltd. (“Xinglong”), a leading supplier of equipment to the red meat industry in China.
The transaction will provide Frontmatec with market access in China and in addition a local production setup dedicated for the Chinese market. Furthermore, Xinglong will benefit from transfer of advanced technology from Frontmatec.
“We have been in close dialogue with Xinglong for nearly one year, and we are very impressed with the development of the company and the current management team. Xinglong has strong capabilities within the industry and close relationships with the largest customers in China. The acquisition enables Frontmatec to strengthen our market position and to be able to tap into the large growth potential in China.” said Henrik Andersen, CEO of Frontmatec.
Founded in 2001, Xinglong is a reputable Chinese slaughtering equipment enterprise, offering cost-effective equipment and technologies adapted to livestock and poultry slaughtering in China and other developing countries. “I am very pleased about the partnership agreement with Frontmatec. I am confident that the envisioned combination of the technologies and know-how of the two companies will lead to a prosperous future.” resumes Mr. Wang, Founder of Xinglong
China is the world’s single largest market accounting for around 50% of all pigs slaughtered globally. The market is expected to experience strong growth going forward driven by an increased demand for more automated and high speed solutions and an increased focus on food safety.
Going forward, Xinglong will continue to serve the Chinese market from its current base in Jining under its current brand name. However, in order to accelerate the sales of more advanced solutions in China, Frontmatec will support Xinglong with relevant technology and competences.
The completion of the transaction is subject to final closing, which is expected to happen within the coming months.