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China

DaChan plans two new plants to meet demand

By RJ Whitehead , 20-Dec-2016

© iStock
© iStock

Meat processor DaChan Food will open two new plants in the north of China to keep up with growing demand.

Though DaChan claims to be China’s biggest chicken processor, and KFC China’s biggest supplier, demand has outstripped production capacity as it stands at its four plants. 

The new sites will be in and around Bengbu, a city in the northern province of Anhui. One of them will be set up through a wholly-owned subsidiary, Bengbu DaChan Food, at an investment of 200m yuan (US$28.7m).

The other site will be established through Bengbu Taixu & DaChan, in which DaChan owns a stake. DaChan Food will put 80m yuan into the project.

It expects the two plants will double production capacity for its processed foods, which include pork, fish and vegetable lines.

The company said the move would help the business be "in a more competitive position in markets which have higher consumption power and larger market scales, such as the east China, central China, south China and south-west China markets".

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