October 12, 2017
Neovia strengthens presence in Vietnam through investments in projects
Neovia has entered into exclusive negotiations to acquire a feed production site in Quy Nhon, located in the Binh Dinh province in central Vietnam.
The company wants to consolidate its position and improve coverage of its activities in the country, thus affirming Neovia's goal of strengthening business in Asia.
Neovia has operations in Vietnam for over twenty years. In all its seven key activities, the company operates mainly in complete feed production, aquaculture, and pet care. It currently employs 850 people and has five production sites, two research centres, six logistics platforms, two technical centres and one laboratory in the country.
With a population of nearly a hundred million and 18.7 million tonnes of feed production, Vietnam is the world 14th biggest feed market, mainly for swine, poultry and aquaculture. Neovia has increased its investments in the country to bolster industrial and commercial engagements as well as supporting the growth of the Vietnamese market, which grew over 20% in 2016.
The acquisition of the Quy Nhon production site will help Neovia to raise its production capacities by 50,000 tonnes per year and consolidate its position in central Vietnam. This region is strategically located to effectively supply a growing market estimated at over three million tonnes of feed while also helping to expand the company's export activities to South East Asia.
Furthermore, Neovia will make additional investments in the factory to modernise its facilities, improve production capacities and offer products in line with the requirements of livestock farming customers and distributors in the area.
In addition to this major project, Neovia is enhancing its industrial tools and service offering by building a new factory in Ha Nam, thereby creating a new production line at the Dong Thap site, and expanding its storage capacities in Binh Duong.
"These new investment projects in Vietnam illustrate our commitment to consolidate our historical positions and to pursue targeted external growth operations," H. de Roquefeuil, CEO of Neovia, said.
"Through these projects and acquisitions we have made in Asia over the past two years, Neovia is strengthening its coverage in Asia for its seven activities, in order to provide innovative and competitive solutions that locally respond to the growing needs of populations."