Published 18 April 2011
Shanghai Pengxin Group Ltd, the conditional buyer from the receivers of the 16 Crafar dairy & dry-stock farms in the central North Island, said through company spokesman Cedric Allan last week it planned to increase milk production from the properties and help the dairy industry capture a bigger share of the Chinese market with branded, dairy-based consumer products.
“In doing so it will invest in upgrading the farms, employ more New Zealanders and work co-operatively with New Zealand dairy plants to create & manufacture products such as baby food, cheeses & ice creams that will appeal to the fast-growing Chinese & other Asian markets.”
Shanghai Pengxin chairman Jiang Zhaobai will be sole director of the Hong Kong-based subsidiary, Milk NZ Holding Ltd, planned for its New Zealand dairy industry involvement.
The Shanghai Pengxin conglomerate was founded 15 years ago and has investments in commercial & residential real estate, infrastructure, mining, finance & agriculture, and increasing involvement outside China. It’s building up sheep breeding operations in China and plans to have flocks totalling 3 million within 5 years. Since 2005, it has had a controlling interest in a large farming operation in Bolivia producing sorghum, soybeans & corn and is negotiating further farming investments in Argentina & Cambodia.
Milk New Zealand lodged an application with the Overseas Investment Office last week for approval to buy the Crafar farms. Shanghai Pengxin Capital said it would provide a shareholder advance to fund the purchase of the farms & related assets.
The initial commitment would be an investment of more than $200 million. Mr Allan said the company would prefer to work in partnership with New Zealand processors rather than establish a new facility.
24 December 2010: Government rejects Natural Dairy bid for Crafar farms
13 December 2010: May Wang seeks suspension of bankruptcy order
9 December 2010: The Wang week…..
9 December 2010: May Wang bankrupt
8 December 2010: Judge rejects May Wang’s insolvency scheme, appeal filed
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.