Haikui Seafood AG
Haikui Seafood signs land use agreement for new production facility
DGAP-News: Haikui Seafood AG / Key word(s): Contract 13.01.2014 / 08:31 --------------------------------------------------------------------- Haikui Seafood signs land use agreement for new production facility Frankfurt am Main, January 13, 2014. The Chinese subsidiary of Haikui Seafood AG has successfully signed an agreement regarding the acquisition of land use rights with the local authorities in Dongshan, paving the way for the construction of its new production site. The acquired land is located in the Dongshan Marine Biotechnology Industrial Park, Dongshan Island, Fujian Province, and has a total size of 1,000 mu (approximately 667,000 square metres). Total land costs amount to 110.0 million Renminbi (around 13.2 million Euros), of which Haikui Seafood has paid 70 per cent (77.0 million Renminbi or 9.2 million Euros) upon signing of the land use agreement. The remaining 30 per cent (33.0 million Renminbi or 4.0 million Euros) are due by the end of June 2014. 'The construction of the new processing facility in Dongshan is an important step in our mid- to long-term strategy. With the new facility we intend to double our existing processing capacity. Through greater efficiency and higher productivity, the new factory is expected to improve our competitiveness and our margins. The new factory will also enable us to conduct the business of extracting compounds from marine processing by-products, which would also boost our overall profitability', says Chen Zhenkui, CEO of Haikui Seafood. After the initial site preparation, the company intends to start Phase 1 of the site construction around April 2014, so that it could go into operation by the end of 2015. The estimated total investment amount for the new seafood-processing factory is approximately 550.0 million Renminbi (approximately 66.0 million Euros). Recently, Haikui Seafood secured a long-term loan from the German development finance institution DEG (Deutsche Investitions- und Entwicklungsgesellschaft), a subsidiary of KfW (Kreditanstalt für Wiederaufbau), amounting to 25 million US dollar, which will contribute to the financing of the new factory. As a precondition for the granting of the loan, DEG performed an extensive audit on economic, environmental and social aspects of Haikui Seafood's operations. Apart from aligning Haikui Seafood's financing structure with its asset structure, the loan offers attractive financing costs: The annual interest rate is the applicable 6-month US dollar LIBOR plus 4 per cent - currently adding up to 4.34 per cent. The loan has a maturity of seven years. According to the loan repayment schedule, the first of ten equal semi-annual instalment repayments is due on March 15, 2016. About Haikui Seafood AG Haikui Seafood processes fish and seafood for the Chinese and international markets. Its products range includes frozen or canned fish and seafood, produced from a large variety of species of raw fish and seafood, including prawn, crab, various fish species and shellfish as well as cephalopods. Clients of Haikui Seafood are distributors in China and overseas, located mainly in Asia, the U.S. and Europe. Haikui Seafood employs on average around 700 permanent employees and around 1,150 additional temporary workers in 9M 2013. The company has an annual processing capacity of more than 34,000 tonnes (output). The processing facilities are located in the South-East of China on Dongshan Island, Zhangzhou, Fujian Province. Haikui Seafood operates a streamlined supply chain including self-owned processing facilities, in-house research and product development capacities as well as warehousing and cold storage facilities while simultaneously cooperating closely with raw goods suppliers. For further information please visit www.haikui-seafood.com or contact Kirchhoff Consult AG Anja Ben Lekhal Phone: +49 (0)40 609 186 55 anja.benlekhal@kirchhoff.de Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Haikui Seafood's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Haikui Seafood's forward-looking statements are proving to be incorrect, Haikui Seafood's actual results may be materially different from those expressed or implied by such forward-looking statements. Haikui Seafood does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. End of Corporate News --------------------------------------------------------------------- 13.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Haikui Seafood AG c/oAshurst,OpernTurm,Bockenh.Landstr.2-4 60306 Frankfurt am Main Germany Phone: +49 40 60 91 86 - 0 Fax: +49 40 60 91 86 - 60 E-mail: haikui@kirchhoff.de Internet: www.haikui-seafood.de ISIN: DE000A1JH3F9 WKN: A1JH3F Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf End of News DGAP News-Service --------------------------------------------------------------------- 247649 13.01.2014
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