Japfa Comfeed Vietnam Co. Ltd., unit of Japfa Ltd, build a new factory in the seven-hectare Nhon Hoa industrial areas, Vietnam - Photo by Vietnam Embassy Office

JAKARTA (TheInsiderStories) – Japfa Comfeed Vietnam Co. Ltd., unit of Japfa Ltd, build a new factory in the seven-hectare Nhon Hoa industrial areas, Vietnam, said the company yesterday. The Singapore-based firm is the parent poultry feed producer, PT Japfa Comfeed Indonesia Tbk (IDX: JPFA).

The Indonesian Ambassador to Vietnam, Ibnu Hadi, said in an announcement made by the his office, the manufacturer disbursed VND300 billion (US$12.92 million) for the project. this feed factory has a production capacity of 180,000 tons of animal feed per year. The Group had invested and started its business in Vietnam since 1996.

Japfa feed factory added to the new list of the five existing factories in the provinces of Vinh Phuc, Thai Binh, Hoa Binh, Long An. While, 71.91 percent of the parent shares are owned by the Santosa family, the descendants of the late Ferry Teguh Santosa.

The unit began investing in Vietnam under a joint venture with the Vietnam Livestock Company. In 1999, this joint venture later became a 100 percent foreign investment company under the name Japfa Comfeed Viet Nam.

In October, Japfa collaborating with a Dutch’ company, Hendrix Genetics Aquaculture BV plans to establish a broodstock multiplication center shrimp in Indonesia. Both parties has set up a joint venture to run the a shrimp breeding center.

Through its subsidiary, PT Suri Tani Pemuka (STP), the issuer will hold 49 percent of shares in this joint venture with initial capital Rp20 billion (US$1.42 million). In addition, the unit also plans to build a breeding center for Rp33.5 billion. Later, the center will be leased to this joint venture for 10 years at market prices.

In August, Japfa also announced to acquire 100 percent shares of local producer, PT So Good Food for Rp1.2 trillion. The conditional sale and purchase agreement for the share sales that was pressed on August 28. The producer said, the company and its subsidiary, PT Ciomas Adisatwa will take over 100 percent of the food processing producer shares from Singapore’ Anona Pte. Ltd., and Jupiter Foods Pte. Ltd.

This acquisition also included the purchase of of 1,000 Series A shares or 0.004 percent of the issued and paid-up shares in So Good Food, which is owned by Jupiter. It said, payment for the acquisition will be made in cash on Nov. 30 with total amount Rp382.41 billion from both companies to Jupiter and Anona.

Second payment was made in the form of issuance of promissory notes to Jupiter worth Rp849.89 billion. The notes will bear interest from April 16, 2021 with JIBOR (1 month) +2.25 percent per year, until paid by the company. According to the management, the acquisition is a strategic step of Japfa to enter the downstream business, by expanding the capacity of processed meat production facilities.

In addition, the issuer revealed that the acquisition is also intended to increase marketing and direct sales of processed products to consumers. In addition, said the management, the share takeover is also part of the vertical integration strategy by the company.

Japfa Comfeed was founded in 1975 and So Good Food focuses on providing practical food rich in quality protein was founded in 1999. While, STP has a business line in the field of fish and shrimp feed production, fish and shrimp hatchery and rearing, and fish and shrimp product processing.

Since 1992, the unit have been manufacturing a wide range of feed for fresh, brackish and marine water fish and shrimp. The producer operate five feed mills across Indonesia. And, Hendrix Genetics Aquaculture is the parent entity of the Aqua Genetics business unit of Hendrix Genetics Group.

The group is known as the main supplier of pathogen-free brood stock genetically developed for the Indonesian shrimp industry. With this joint venture, the company can provide supplies to the Indonesian shrimp industry from within the country, through a parent breeding center.

In the first nine month of 2020, the company recorded a net profit of Rp257.18 billion or plunged 75.34 percent from the same period in the previous year with a profit of Rp1.04 trillion. The sales also fell 8.28 percent from Rp27.17 trillion to Rp 24.92 trillion.

US$1: VND23,216.68

Written by Editorial Staff, Email: theinsiderstories@gmail.com