Tuesday, November 23, 2010

Texchem unit to export RM80m seafood products to China over next 2 years

GEORGE TOWN: TEXCHEM RESOURCES BHD []'s unit'' Texchem Food Sdn Bhd (Texchem Food) will export RM80 million worth of seafood products to China over the next two years under an agreement signed with China.

Texchem Food had on Monday, Nov 22 signed a memorandum of understanding with state-owned China Hi-Tech Group Corporation subsidiary China National Chemical Fiber Corp (Sinofiber).

Texchem Resources chairman Tan Sri Fumihiko Konishi said Texchem Food's collaboration with Sinofiber would enable Texchem Food to tap into the growing seafood market in China.

China constitutes 10% of Texchem Food's revenue and the new deal with Sinofiber will increase it to 25% in 2011 and 35% in 2012.'' Texchem Food is the world's largest processor and exporter of soft shell crabs with access to consistent supply of over 100 tonnes per month.

Texchem Food CEO and president, Brian Tan said the initial deal would be RM30 million in 2011 with over 3,900 tonnes of soft shell crabs, frozen seafood (fish, squid and shrimp) and fishmeal.

Texchem Food's Asean facilities exports to China are expected to increase to RM50 million in 2012.

The group had been exporting seafood products to China since 1987 via one of its subsidiaries Sea Master Trading Co Sdn Bhd.

Under the MoU, Sinofiber would initially market and distribute the products in Shanghai and Beijing and later expand to Tianjin and Shenzhen which are the largest markets for seafood in China.

Texchem Food will provide technical support and expertise to Sinofiber.

Konishi said Texchem Food had no plans to establish a factory in China but is looking at enlarging its facilities in Asean countries.

He added Asean countries were very important for its supply chain and it would expand these facilities.

"Hence, we have plans over the next 10 years to enlarge our supply base by setting up hatcheries to secure enough supply to meet our customers' demands.

"Texchem will invest in such aquaculture activities and will also import TECHNOLOGY [] from Shangdong and Dalian in China. We are also in the midst of setting up two fishmeal factories in Java, Indonesia," Konishi added.

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