China Fishery acquires a fishmeal plant

New plant in Ilo, the most important port city in South Peru, will enhance the utilisation of China Fishery’s fishing quota in the region.

Leading international frozen seafood supplier Pacific Andes International Holdings Limited (“Pacific Andes”) on Tuesday announced that its Singapore-listed subsidiary China Fishery Group Limited (“China Fishery”) has acquired two Peruvian fishing companies, namely Consorcio Vollmacht S.A.C. and Negocios Rafmar S.A.C., for a total consideration of US$26.16 million (approximately HK$204.05 million), bringing China Fishery’s share of the total allowable catch of Peruvian Anchovy to 6.21% in North Peru and 11.72% in South Peru.

Assets of the two Peruvian fishing companies include two fishing vessels and one fishmeal processing plant. The fishing quotas attached to the fishing permits are equivalent to 0.16% and 0.81% of the total fishing quota in the northern zone and the southern zone of Peru respectively.

The fishmeal processing plant is situated in Ilo, the most important port city in the South of Peru. Ports in Ilo handle approximately 50% of total fish landing in South of Peru, according to a China Fishery report.

Commenting on the acquisition, Mr. Ng Joo Siang, Vice-Chairman and Managing Director of Pacific Andes, said, “China Fishery has always aimed to be a leading consolidator in the global fishing industry. This acquisition is very much in line with our growth strategy, enabling us to gain a greater share of the Peruvian fishing quota and benefit from the persistent uptrend in global fishmeal demand.”

Mr. Ng added, “We currently operate six fishmeal processing plants in Peru, of which five are located in North and one in the South. The strategic location of this additional fishmeal processing plant will also allow the Group to achieve a geographical spread throughout Peru and further enhance the utilisation of its fishing quota in the South of Peru. A higher fishing quota will also lead to better economies of scale as well as higher operating efficiencies of fishing fleet and fishmeal processing plants.”

The acquisition will be funded by China Fishery’s internal resources.