According to Adirek Sripratak, president and CEO, CPF planned to establish a new 100%-owned company, CP Aquaculture (Dongfang) Co Ltd, to operate a shrimp hatchery business in China.
CP Aquaculture, with initial registered capital of 10 million renminbi, or 45.22 million baht, would be operational by the first quarter of 2007.
The new company's capital would later increase by another 22 million renminbi, or 99.497 million baht, payable in the second quarter of 2007.
Meanwhile, CPF has expanded its investment in Malaysia after entering the aquaculture market there last year.CPF, through Star Feedmills (M) Sdn Bhd (a subsidiary in which CPF indirectly holds a 100% stake), has also purchased fixed assets in the Malaysian fish-feed market from Charoen Pokphand Jaya Farm (M) Sdn Bhd, connected to CPF, for 1.29 million Malaysian ringgit, or about 13.13 million baht.
Mr Adirek said the transaction would fulfil CPF's objective to expand its aquaculture business in Malaysia, where it saw great potential.
The expansion of offshore investments is in line with CPF's new strategy. Mr Adirek recently announced that CPF would lower domestic investment over the next three years to shift focus to offshore expansion, aiming to counteract local currency volatility and growing trade barriers against the Thai meat trade.
Offshore investment has been active in the past few years, starting with US$22 million to acquire a poultry-processing plant in Turkey in 2003 and $3 million to set up an aquaculture project in China the following year.
Source:Bangkok Post