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ON 07/03/2019 AT 20:03 PM
Hong Kong-based Nissan Foods Company Limited, best known for its Cup Noodles(R) product line, just announced it will be investing around RMB180 million (US $261M) for a new production plant to be located in Zhuhai, the Peoples Republic of China.
The new facility will be used for manufacturing packaging materials to facilitate its business growth and development in the PRC and Hong Kong.
Today, Nissin Foods (China) Holdings Company Limited, a wholly-owned subsidiary of the Group, has signed an equity transfer agreement with Grandview China Holdings Limited to acquire its entire equity interest in UNI-INTEC (Zhuhai) Scientific Technology Co., Ltd.*, which owns the land use rights of an about 30,000 sq.m. site in Zhuhai, the PRC ("the site"). After the acquisition is completed, the Group intends to spend about RMB180 million to build the said plant on the site for manufacturing packaging materials, and targets to complete its construction by 2021.
Mr Kiyotaka Ando, Executive Director, Chairman of the Board and Chief Executive Officer of Nissin Foods, said, "Since becoming listed in 2017, we have been actively and at the same time cautiously looking for opportunities to invest in appropriate facilities and partnership to enhance production efficiency and support our diversified product portfolio. The acquisition and the construction of the new plant will enable the Group to better mitigate production costs and reap greater synergies from its production facilities operating in concert. Looking ahead, we will continue to examine M&A opportunities that promise to boost our strength in enlarging market share and delivering considerable growth, and ultimately, enable us to bring sustainable returns to shareholders." |
