Aviko Acquires Chinese Potato Processor
Royal Cosun has announced Aviko reached an agreement with Hongyuan Agriculture to acquire 90% of its shares in Hongyuan Louis.
Hongyuan Louis is a relatively young producer of frozen French fries located in Xilinhot, North of Bashang in China. The deal includes a factory with an annual capacity of 50,000 tons, potato storages, a semi-automatic cold store, boiler house, waste-water treatment, and around 170 employees. Hongyuan Agriculture will stay involved as a 10% shareholder and closely cooperate with Aviko on amongst others the sourcing of potato.
Aviko has been active in China since 2007 with production activities in Gansu. In recent years, Aviko has successfully established a strong commercial distribution network for frozen potato products throughout China with a sales head office in Shanghai.
“With an average market growth for frozen fries of 10% per year, China is of major strategic importance to Aviko. For us, the acquisition of Hongyuan Louis is just the perfect opportunity to complement our already strong Chinese commercial position with modern local production facilities. The deal will help us gain and sustain a prominent market position in China,” explained CEO Aviko Group Chris Deen.
According to the press release, more and more Chinese customers are embracing Western culture, fashion, and habits. This also translates into a rapidly growing popularity of western-oriented menu’s. Potatoes and potato products such as French fries are increasingly becoming a favorite part of daily nutrition.
“The acquisition fits perfectly in Cosun’s ambition to have a leading position in plant-based solutions. We believe that plant-based is key to a sustainable future for next generations. That is why we are committed to the growth strategy of Avioko, taking full advantage of the growing global markets for potato products,” concluded Albert Markusse, CEO Cosun.