March 26, 2009
China's East Hope Group to expand in Asia
China's East Hope Group plans to further expand its feed operations in Vietnam, Indonesia and the Philippines.
East Hope intends to double the number of feed plants it has in Vietnam to a total of ten within three years, said company Director Shawn Liu.
The company also aims to expand into Indonesia with two plants in the next two years, open one in Singapore and another in the Philippines.
Through the US$30 million of planned investment, East Hope expects to produce about one million tonnes of feed overseas per year, about a quarter of its capacity in China.
The timing is right despite the world economic troubles as people have to continue eating, said Liu, adding that farmers will be among the last to be affected by the crisis.
East Hope finds in Vietnam a mix of state-owned and private business that resemble China's business landscape, according to Liu.
Liu said rising per capita income will increase meat demand. The company also believes that Southeast Asia holds promise for other East Hope businesses, such as industrial materials.
Shanghai-based East Hope, and Sichuan-based New Hope Group led by Liu's younger brother, are the two largest feed producers in China.