Lesaffre signs an agreement to acquire a majority shareholding in Chinese companies, Guangxi Sungain Yeast and Guangxi Sungain Biological Technology.
Pursuing its expansion strategy on Chinese market, Lesaffre, a key global company in the field of yeast and fermentation, has signed an agreement with the Chinese family group Guangxi Sungain Sugar.
As François Hollande, the President of the French Republic, was in China, Antoine Baule, Lesaffre’s Chief Executive Officer, signed an agreement in order to acquire a majority shareholding in Guangxi Sungain Yeast Co. Ltd and Guangxi Sungain Biological Co. Ltd.
With productions starting respectively in December 2009 and September 2014, those companies of yeasts and yeast extracts are based at Chongzuo, Guangxi region, 150 km from Nanning, the most important region for the production of sugar cane in China. As subsidiaries of the Sungain group, one of the 8 most important sugar producers in Guangxi, China, they employ 275 people and have high standards industrial units.
Lesaffre has been present on Chinese market since the 80’s with its premium Saf-Instant brand. In 1999, the group acquired a yeast plant at Ming Guang, near Nankin, 300 km from Shanghai. In 2010, one yeast and one yeast extracts new plants were commissioned at Laibin, Guangxi, in partnership with the sugar producer Donta. Lesaffre also uses 4 Baking Center™ in Shanghai, Hong-Kong, Beijing and Canton to propose technical support to its customers in mantou and bread making. It employs 950 people in China.
With this operation, Lesaffre will strengthen its presence and its offering to Chinese customers, not only in baking but also in the field of food taste and pleasure, in animal nutrition and health, and in nutriments for biotechnologies.
Antoine Baule, Lesaffre’s Chief Executive Officer: « China is a promising market in the fields on which we operate. Lesaffre welcomes this new operation, which will enable us to strengthen our position in this country, where we have been present for many years and where we want to work on long term. We have decided to invest in a significant way in the development of Sungain, as much on sales as on operations planning, to answer to the increasing market demand, especially yeast for mantou, animal nutrition and biotechnologies. With our investments in China, we are establishing our will to be close to our customers, to offer them our products and services and fulfill their specific requirements. »
Lao Jian Ming, Chairman of Guangxi Sungain Sugar: «We are very pleased to join forces with Lesaffre, a family company internationally known and recognised for its industrial expertise and the quality of its services and products. We share with this French company a common vision of development, respecting environment and health of final consumers. »
Lesaffre was advised on legal aspects of this operation by the firm Linklaters and on the financial aspects of the transaction by PwC.
Guangxi Sungain Sugar was advised on legal aspects of this operation and on the financial aspects of the transaction by Yingke Law Firm.