JV: Ceva Santé Animale, Sichuan Hengtong Animal Pharmacy
Ceva Santé Animale, and Sichuan Hengtong Animal Pharmacy Co., have signed an international partnership agreement - forming Ceva Hengtong.
Ceva Santé Animale is a global veterinary group based in Aquitaine, France (Libourne) and Sichuan Hengtong Animal Pharmacy Co. is a veterinary company in Sichuan (Neijiang, China).
This new Franco-Chinese venture will offer a comprehensive range of pharmaceutical products and services to improve the production of swine and poultry in China.
More than a quarter of all the meat produced worldwide is now eaten in China 1. With the country’s demographic growth an improvement of living standards, this consumption will continue to grow, particularly that of pork and chicken.
Chinese livestock production will therefore continue to rise, bringing strong demand for veterinary pharmaceuticals. Ceva Santé Animale and Sichuan Hengtong Animal Pharmacy have decided to set up a joint venture - Ceva Hengtong - to meet this demand.
Faced with a livestock market which remains highly fragmented in China (60% of farmers have fewer than 50 head of sows), Ceva Hengtong will focus on the poultry and swine segments, providing these businesses with the services they need in order to improve efficiency.
Ceva Santé Animale will own 55% of the shares in Ceva Hengtong and Sichuan Hengtong Animal Pharmacy 45%. Liang Guo, current CEO and the largest shareholder of Sichuan Hengtong Animal Pharmacy, will be appointed Managing Directorof the joint venture. The new company will continue to be based in Neijiang but relocate to a purpose built new facility in Sichuan meeting all international quality standards by 2015. Ceva Santé Animale will import certain products made in France (Libourne) and will benefit from the sales networks of Ceva Hengtong to distribute them.
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