(Yicai) July 22 -- Chinese frozen food product maker Sanquan Food plans to invest AUD280 million (USD182.5 million) to build a production facility in Australia to expand its presence in Oceania and Southeast Asia.

Sanquan’s newly established subsidiary in the Cayman Islands will be responsible for investing, building, and operating a new factory in Australia, as well as for the expansion in Australia, New Zealand, and SE Asia, the Zhengzhou-based parent firm announced yesterday.

The production facility will also include a research and development center for local technologies and products, Sanquan noted, without revealing any further details about the project.

Building the plant in Australia will not only help Sanquan better meet the consumption demand of Australian residents but also further expand its presence in other markets in Oceania and various SE Asian nations, the firm added.

The annual per-capita consumption of frozen foods in Australia is about USD120, far beyond China’s USD35, and SE Asia’s frozen food market is growing at an annual compound growth rate of 9 percent, according to data disclosed by Sanquan.

Sanquan’s main products are Chinese-style quick-frozen products made from rice and flour and seasoned foods. The company has several production bases in China and has established a complete cold-chain network consisting of production, warehousing, and logistics that covers the country’s major city groups.

Last year, Sanquan produced 637,000 tons of quick-frozen food products with rice or flour as major ingredients, according to its latest annual earnings report. However, restricted by high sea transportation costs for frozen food, the firm had not yet reported any sales revenues from overseas markets as of the end of 2024. 

Sanquan’s shares [SHE: 002216] were trading up 0.7 percent at CNY11.30 (USD1.58) as of 1.50 p.m. in Shenzhen today.

Editor: Futura Costaglione