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SK Group acquires 27% stake in Chinese livestock firm to enter livestock industry

Collected: 2017.02.06

Distributed: 2017.02.07

Source: Go Direct

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South Korea’s conglomerate SK Group is moving into agriculture and livestock segment by investing in a Chinese livestock company. The group will sign a contract to acquire a 27 percent stake in China’s third largest beef producing and processing company Kerchin Cattle Industry Co. for 80 billion won ($70 million), according to sources from the business circles on Sunday.

It was reported that 10 or more local livestock experts have participated in the equity investment led by SK Holdings Co., the group’s holding entity, by establishing a cooperative association and chipping in a combined 5 billion won. The experts will be responsible for passing on Korea’s stock farming and processing techniques to the Chinese company.

SK Group plans to expand its footprint in the so-called sixth industry that combines the first agricultural, fisheries and livestock industry, second manufacturing industry and third service industry, by incorporating its strength in Information and Communication Technology (ICT). The group is reportedly tapping additional investment.

Founded in 2002 in Tongliao, Nei Menggu Zizhiqu, Kerchin Cattle Industry is the largest private livestock company in China specializing in the cattle business. It produces 40,000 tons of frozen and chilled beef a year. It has feed producing, butchery and processing facilities. It owns a vast grazing land of 26,880 square meters, equivalent to about 26 percent of total land in Korea.

Shares of SK Holdings closed Monday at 225,500 won, up 2.04 percent or 4,500 won from the previous session.

By Jung Wook

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