Aviko invests in Chinese fries factory

Aviko has acquired a majority interest in a fries factory in the north-east of China. An agreement to this effect was recently reached with Snow Valley Agriculture, the current owner of the factory. The move ties in with Aviko's ambition to capitalise on the opportunities for further growth offered by the Chinese market.

The processing of locally grown raw materials into fries for the Chinese market substantiates the company's aspiration to set up a sustainable production chain in this enormous country. The sale
of fries in China is expected to increase substantially in the coming years. The factory, which will be named Aviko-Snow Valley, was completed as recently as early 2013. It is located approximately 300 km north of Beijing in the Chabei district. The raw materials used by the factory originate from this region and from Inner Mongolia. The soil type in these regions is highly
suitable for large-scale potato farming. Snow Valley Agriculture's proven expertise in the cultivation of seed potatoes and processing potatoes forms the basis for an optimal supply of raw materials to the factory.

Background
Initially, Snow Valley only focused on the cultivation of seed potatoes and the sale of table and processing potatoes. In 2012 the organisation built a fries factory, in which it relied on the expertise contributed by Aviko. Production started in 2013. From that moment onward Aviko has been responsible for the sale of the product. Given the fast rise in demand, the intention is for the organisation to considerably expand its production capacity in the near future. Moreover, a potato flakes production line has also been planned for construction. This process of up-scaling requires additional potato storage capacity as well as an expansion of storage facilities for frozen finished potato products. The fries will be sold on the local Chinese market under the brand names Aviko, Diamond, Tulip, and Windmill. Frozen potato specialties for now continue to be exported from Aviko's locations in Europe.

Steenderen, 5 June 2014

Information:
For more information, please contact
Piet Hein Merckens, CEO of the Aviko group.
Telephone +31 (0)575 458200