The move sees privately owned Hog Slat Inc put $2 million into
building the plant, near Guiyang, capital of southwestern
Guizhou province. Newton Grove, North Carolina-based Hog Slat is
seeking to extend its foothold as one of a handful of foreign
firms operating in a sector dominated by small domestic players.
Chinese companies are building hundreds of new facilities to
replace backyard pig farms that have shut in recent years. Many
are using foreign equipment and expertise to boost efficiency
and output in the world's top pork producer.
"It (China) is not a large part of our business today,"
president Tommy Herring told Reuters at the Guiyang plant's
opening. "But the industry needs to modernize so it has the
potential to be a very, very big part of our business."
Family-owned Hog Slat's aim is to have 10 plants in China within
four years, Herring said, without disclosing overall financial
commitments or business targets.
The new plant will make 65,000 concrete slats per year for pig
barn floors - Hog Slat produces more than 1 million slats a year
overall - enough to supply roughly 18 large farms hosting around
8,000 sows each.
Hog Slat has another concrete slat plant in Shandong as well as
a steel flooring factory in Henan. The new plant will help Hog
Slat keep costs down while competing for business in southern
China, according to the company.
The Guiyang plant will supply rapidly growing customers in the
region, including Sichuan Giantstar Enterprise Group, Chongqing
Riquan Agriculture and Livestock Co Ltd, Yunnan Shennong
Agricultural Industry Group and Guangdong Wen's Foodstuff Co,
according to Hog Slat country manager for China Hans Zou.
(Reporting by Dominique Patton; Editing by Kenneth Maxwell)
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