De Heus strengthens footprint in Vietnam

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De Heus, in its strategy to be a leading player in the Vietnamese feed sector, continues to enhance its production capacity in that Asian country, it has just opened its seventh feed plant in the Mekong Delta.

The Dutch feed group said the latest facility, backed to the tune of US$30m, is located 20km from its existing aqua feed plant in Vinh Long province.

First phase capacity of the new facility will be 250,000 tons per year and it will supply pig, poultry and cattle production along with other ruminant sectors. 

In terms of compound animal feed, Vietnam has an estimated yearly production output of 11 million MT.

Like in China and other South East Asian markets, population growth, changing dietary habits and rising income have resulted in a dramatic increase for meat consumption in Vietnam.

Total capacity for the feed manufacturer in that country has now reached 1,000,000 tons per annum.

De Heus has also invested in a new port facility the region - in Hau Giang. It said the depot will allow it take advantage of the Mekong’s vital waterway transportation.

The new port facility will also enable it to supply customers in Cambodia in a timely and cost efficient manner, said the firm.

De Heus first entered the Vietnamese market in 2008 through the acquisition of two factories in Binh Duong and Hai Phong.

The company invested in the construction of a facility in Dong Nai in 2011. That build was followed by the “strategic” purchase and modernization of an aqua feed plant in Vinh Long.

And in 2014, De Heus built two new factories in the Binh Dinh and Vinh Phuc regions of the country.

Premix expansion in Europe

De Heus has also been expanding the premix side of its business in Europe. February this year saw the completion of two facilities in the Netherlands and Poland. 

The two premix production sites are located in Veghel in the Netherlands and Łęczyca in Poland.

“Traditionally, we export form the Netherlands to the rest of the world. From Poland we can cover the eastern part of Europe,” Joost Belt, corporate director of marketing and communication at the Dutch firm, told us then.

The new facilities, he said, are built close to De Heus compound feed manufacturing sites in the same locations to allow easy delivery of premixes to its own factories. 

They are also located next to the existing De Heus laboratory facilities at the Veghel and Łęczyca sites, said the spokesperson. “This allows us to continuously monitor the quality of the raw materials and end products as well,” he said. 

The new builds includes the latest in technology to allow for considerable flexibility in production, said De Heus, which is headquartered in Ede-Wageningen. 

The Dutch compound feed producer already has premix facilities in Russia and Brazil. 

October last year saw it acquire Iberian feed manufacturer, Nuter, from a private equity group to ‘consolidate’ its position in Europe. 

A few months prior to that, in July 2015, De Heus purchased Serbian feed maker, Proteinka, in a move it said would strengthen its foothold in the Balkans.

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