DUTCH animal nutrition and fish feed producer Nutreco recently announced changes to its global strategy. The company has determined that the divestment of the feed and meat businesses in Spain and Portugal allows the company to better align with the company’s growth strategy. Additionally, it announced that it will also be expanding its presence in Asian markets.
"After careful consideration we intend to divest a large part of our non-core businesses,” said Knut Nesse, chief executive officer of Nutreco. “We have concluded that the fundamentals that underpin our strategy 'Driving sustainable growth' remain strong. The intended divestment of our compound feed and meat businesses in Spain and Portugal brings us closer to our core growth businesses and markets.”
Nutreco said that the changes are a logical step to enhance their worldwide leadership position in animal nutrition and fish feed. The reorganized business structure will consist of two global business units (Salmon Feed and Feed Additives) and three regional business units (Americas, Asia and EMEA) which Nutreco believes will provide enough scale and execution power to accelerate growth into new markets.
Responding to long term growth prospects in the Asian market, Nutreco also recently announced it is expanding its presence in Asia. With two new state-of-the-art plants in Vietnam (Ho Chi Minh City area) and Indonesia (East Java) and a remodel of its Chinese plant in Xiangtan (Hunan), Nutreco increases its focus on the production of premixes and farm minerals. The Vietnamese facility will be operational in the second quarter of 2014 and the plants in Indonesia and China in the first quarter of 2015.Both plants will produce premixes and farm minerals and in Vietnam also young animal feed concentrates will be produced.