Zhengzhou-based frozen food company Sanquan Foods has announced plans to invest CNY500 million to build its southwestern manufacturing base in Sichuan, aiming to increase its market share.
According to the report published by the company, Sanquan Foods plans to set up a wholly-owned subsidiary, Chengdu Quanyi Foods Company, with registered capital of CNY50 million. At the same time, it plans to build a manufacturing base in Sichuan through the newly established subsidiary. The total investments in this project will be no less than CNY500 million, including CNY350 million in fixed assets investments. The newly established subsidiary will be mainly engaged in the production and sales of frozen food, instant food, and fresh food.
Sanquan Foods said that the reason for building the manufacturing base in Sichuan is to cut the distance between its manufacturing base and the sales markets in addition to introducing its products into the market within the shortest time. A representative from Sanquan Foods revealed that the new manufacturing base will research and produce products that can meet the features of the local market to further raise its market share in this area.
Sanquan, along with Synear and Longfong, is one of the top three frozen food brands in China and the three companies occupy about 60% of the total market.