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China

Sino Agro Food’s Mega Prawn Farm Spun-Off and Expanding

 

Sino Agro Food, Inc. (SIAF) develops and operates protein food production facilities in the People’s Republic of China.  The Company produces, distributes, markets and sells sustainable seafood and beef to the rapidly growing middle class in China.  Activities also include production of organic fertilizer, animal feed and produce.

 

It’s a global leader in developing land-based recirculating aquaculture systems (RAS), and with its partners, it’s the world’s largest producer of sustainable RAS freshwater prawns (Macrobrachium rosenbergii).

 

In a February 2016 interview with Shrimp News, Dr. Tony Ostrowski, SIAF’s Chief Scientific Officer, said, “SIAF was incorporated in Nevada, United States, and our operations and corporate headquarters are in China.  We are primarily a holding company of joint ventures, but we do own some of our businesses.  In China, a foreign company, like our company, can’t own land, it can’t own permits, and it can’t own licenses.  Basically, it can’t own anything, but it can joint venture with Chinese entities.  Sometimes our joint venture partners come in with cash, and sometimes they come in with land.  We provide the technology, management, organizational and construction skills.  We also market the products produced by the joint ventures.  If our joint ventures prove successful, we can contractually take on a majority stake in the company, and therefore, under Chinese law, own the company including its assets, permits and land.  That is our corporate strategy...in China.”

 

In early March 2017, SIAF spun-off its mega prawn farm to Hong Kong based Tri-way Industries, Ltd., an independent corporation in which SIAF holds a 36.6% ownership position.  Previously Tri-way was a wholly owned entity of SIAF.  Part of the reason for the spin-off was to better position the prawn farms assets for debt and equity investment and for working and development capital.  Tri-way plans to ramp up the production of prawns, estimating that production will increase at least 50% in 2017, depending on the timing of capital infusions.  The aim of the project is to grow as much as 300,000 metric tons of freshwater prawns a year, using recirculating aquaculture systems, or RAS technology. 

 

Tri-way also acquire rights to SIAF’s RAS technology through a licensing agreement with Capital Award (CA), a wholly owned subsidiary of SIAF.  CA will no longer be involved in the sale of aquaculture goods, but will concentrate on project development and becoming a “turnkey provider” for licensing its RAS technology.

 

Information: Dr. Anthony Ostrowski, Chief Scientific Officer, Sino Agro Food, Inc., Room 3801, Block A, China Shine Plaza, No. 9, Linhexi Road, Tianhe District, Guangzhou, China 510610 (Mobile Phone USA + 01-808-386-7420, Phone in China +86-20-3888-0923, Email tony.ostrowski@sinoagrofood.com, Webpage http://sinoagrofood.com).

 

Information: Peter Grossman, Investor Relations/USA (Phone +1-775-901-0344, Email info@sinoagrofood.com), or Erik Ahl, Nordic Countries (Phone +46-0-760-495-885, Email erik.ahl@sinoagrofood.com).

 

Sources: 1. Undercurrent News [eight free news reads every month].  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  Ramp Up at China Shrimp ‘Mega Farm’ Underway After Sino Agro Spin-Off.  March 17, 2017.  2. Various Sino Agro Food Webpages.  March 19, 2017.

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