March 7, 2016

Only months after acquiring a 20% stake in U.S. grain and energy company, Lansing Trade Group, China’s New Hope Group is actively pursuing funds to support its strategic growth plans for global expansion and its ultimate goal of becoming a key producer and distributor of beef, lamb, shrimp, and milk, according to Reuters.

Started in 1997 as a chicken farm by its chairman, Liu Yonghao, New Hope has become one of China’s top animal feed producers, with annual property and business sales reaching US$13.83 billion. Currently, New Hope Group has a presence in countries including Australia, New Zealand, and Indonesia, however, Liu told Reuters on the sidelines of the China’s annual parliament meeting that the group is accelerating its fundraising efforts to support overseas acquisitions and expansion.

Last month the group launched a 3 billion yuan (US$460 million) fund with the Harvest Fund and the Zhejiang provincial government for the purpose of funding these acquisitions, and has also raised an additional $450 million from Hosen Capital as a second, diversified funding source.

As part of its goal of transforming from mainly an animal feed company to a protein producer and supplier, New Hope has also recently announced the investment of US$1.35 billion to fund the expansion of its domestic pig farming business over the next three to five years with the goal of reaching an annual output of 10 million hogs.