China-based frozen food product manufacturer, Sanquan Food has disclosed plan to invest A$280 million (US$185 million) to build a production facility in Australia, as part of its plan to expand its market in the Oceania and Southeast Asia.
Sanquan’s newly established subsidiary in the Cayman Islands will be responsible for investing, building, and operating a new factory in Australia, as well as for the expansion in Australia, New Zealand, and Southeast Asia. The new production facility will also include a research and development center.
Sanquan hopes to meet the growing demand for frozen ethnic (Chinese) food like buns and dumplings with fillings in Australia as well as in Oceania and Southeast Asia where there are large communities of Chinese as well as locals who like to consume convenient Oriental ready-to-cook finger foods and ready-to steam food products.
Australia offers a big potential market as its per capita consumption of frozen food is US$120, more than 3 times the size of China (US$35). In addition, Southeast Asia frozen food market is growing at 9% annually.
Sanquan produced 637,000 tons of quick-frozen food products last year with rice or flour as major ingredients. However, due to the high cost of sea freight, the firm has yet to make any sales overseas.
As such, the building of a plant in Australia is timely for its overseas market expansion.
