GERMANY, Rheda-Wiedenbrück. The Tönnies Group continues to further their internationalisation strategy and is setting up the first production location outside of Europe. Together with the Dekon Group, a subsidiary of the West Hope Group, Tönnies is now signing a memorandum of understanding for a slaughter and butchering centre in the Sichuan region.
The two partners will set up a new abattoir and associated butchering business for pork. The abattoir is designed for approx. two mill. pigs and is constructed according to the model of the Tönnies businesses in Germany. The total investment amounts to € 500 mill., of which around € 150 mill. is accounted for by the slaughter and cutting centre.
The Chinese food market is currently in a state of transition. African swine fever has culled stocks in parts of the country. Micro-businesses and backyard farms are now being replaced by agricultural companies whose biosafety corresponds to western-European standards. By signing the official memorandum of understanding, both companies want to start the joint venture now. The foundation stone for the production location is due to be laid in 2020.
“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.”