Guan Chong buys German firm for RM138mil


  • Corporate News
  • Friday, 20 Dec 2019

“Schokinag will require 40% to 50% of the supply of cocoa ingredients from our upcoming cocoa processing plant in Cote D’Ivoire, ” said managing director and CEO Brandon Tay Hoe Lian.

KUALA LUMPUR: GUAN CHONG BHD, the fourth largest cocoa grinder in the world, is buying an industrial chocolate maker based in Germany, expanding its downstream business following recent venture in Africa.

The company, in a statement, said it would pay €29.9mil (RM138mil) to acquire the entire equity interest in Schokinag Holding GmbH.

“Schokinag will require 40% to 50% of the supply of cocoa ingredients from our upcoming cocoa processing plant in Cote D’Ivoire, ” said managing director and CEO Brandon Tay Hoe Lian.

“This ensures that our incoming new cocoa grinding capacity will be met with immediate demand, ” he said.

In August, Guan Chong announced a plan to invest RM280mil over 18 months to set up a cocoa processing plant in Cote D’Ivoire.

The new plant will increase Guan Chong’s production capacity by 60,000 tonnes per annum by the first quarter of 2021.

Guan Chong has a combined grinding capacity of 250,000 tonnes per annum, with 130,000 tonnes from its two factories in Pasir Gudang, Johor, and 120,000 tonnse more from its plant in Batam, Indonesia.

Schokinag’s industrial chocolate plant has an annual capacity of 90,000 tonnes, while its cocoa processing plant can grind 7,000 tonnes of cocoa beans into cocoa mass per year.“The acquisition of Schokinag certainly sets us strategically to target new growth opportunities in the world’s largest chocolate consuming market, ” Tay said.

“The latest move is ideal as we aim not just to enlarge our global client base, but also expand our range of value-added downstream industrial chocolate products to supply to major chocolate players, ” he added.


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3

Guan Chong , buys , German , firm , Schokinag , Tay , grinders , cocoa

   

What do you think of this article?

It is insightful
Not in my interest

Across The Star Online