Tönnies Launches Joint Venture in China
Tönnies Group, the German meat processor, continues to further its internationalisation strategy and is setting up the first production location outside of Europe. Together with the Dekon Group, a subsidiary of the West Hope Group, Tönnies has signed a memorandum of understanding for a slaughter and butchering centre in the Sichuan region of China – initially for two million pigs, which will be run as a joint venture. In a second phase, this will be expanded to six million pigs.
“We are proud to be starting a new chapter in our company history together with our partner, the Dekon Group” explains Tönnies CEO, Andres Ruff. “With our competence in the slaughter and butchering of pigs and our knowledge of the prerequisites, safety and hygiene in food production, we can further consolidate pork production for the Chinese market.”
The two partners will set up a new abattoir and associated butchering business for pork in the Sichuan region. The abattoir is designed for approximately two million pigs and is constructed according to the model of the Tönnies businesses in Germany. The total investment amounts to €500 million, of which around €150 million is accounted for by the slaughter and cutting centre.
“In Sichuan, the first plant is being constructed in compliance with the European standard for pork products. From breeding to slaughtering to processing, we will achieve complete integration in food production,” says Wang Degen, CEO of the Dekon Group, after the signing.
The Chinese food market is currently in a state of transition. African swine fever has culled stocks in parts of the country. Micro-businesses and backyard farms are now being replaced by agricultural companies whose bio-safety corresponds to western-European standards.
With production locations in Germany, Great Britain, France, Spain and Poland, Tönnies is split into eight divisions: Meat Pork, Meat Beef, Convenience, Sausages, Ingredients, International, Logistics and Central Services. The core business of the company, which was established in 1971, concerns the processing and refining of pigs, sows and cattle. Tönnies is a family company employing approximately 16,500 people and in 2018 generated annual revenue of €6.65 billion.
