Xinglong is an equipment supplier to the red meat industry in China and is part of Frontmatec’s plans to grow its presence in China.
With the transaction complete, Frontmatec said it has gained a “strong foothold with a large-scale local production setup dedicated for the Chinese market”.
Frontmatec ceo Henrik Andersen said: “By combining the two companies, we have significantly strengthened our position on the Chinese market, as we can now offer access to the advanced equipment and solutions of Frontmatec for local production and market adaptation. With the close relationships to the leading food companies in China, built and nurtured so carefully by the skilled management team of Xinglong, I am convinced we have a strong platform on which to further grow our market presence in China”.
Going forward, Xinglong will continue to serve the Chinese market from its base in Jining under its current legal name but will gradually adopt the Frontmatec logo and thus become an integrated entity of Frontmatec with support and access to relevant technologies and competences of the global Frontmatec group.
The management team of Xinglong will be led by Andres Li, reporting to COO Kristian Madsen, who has taken up the position as general manager.
Former majority owner Wang will continue in the company as Vice-chairman of the Board of Directors.
Li said: “I am excited about the opportunity to grow Xinglong to become an even stronger player in the Chinese market. I am confident that the combination of Xinglong’s strong market knowledge and transfer of technology from Frontmatec will result in significant growth rates going forward”.
The current production facility of Frontmatec in Shanghai will gradually relocate to Xinglong’s factory in Jining with certain functions such as sales, engineering and project management remaining in Shanghai.