A Chinese majority stake in Southland-based exporter Prime Range Meats is expected to include millions of dollars in factory redevelopment and boost job numbers by up to 40%.
The Lianhua Trading Group has been granted Overseas Investment Office approval to increase its stake in Prime from 24.9% to 75%, the approval required because company assets include 99ha of land at Waikiwi used for holding stock, some of which is sensitive wetlands and bush.
Lianhua's parent company last year imported almost $500 million worth of red meat into China from around the world.
Prime's managing director, Tony Forde, said he and co-shareholder and director Ian Tulloch and other parties had earlier in the year diluted their shareholdings, following a competitive sales process, by issuing new shares.
''This introduced new capital into Prime Range Meats and this new transaction will also see capital expenditure on Prime Range Meats plant of several million [dollars] more in coming months,'' Mr Forde said.
He said job numbers were expected to increase from 120 to about 170, or more, and there was ''significant capital expenditure'' planned for work in and around the plant.
''This deal means the plant will get the capital it needs to be not only sustainable, but expand over the next five years. That will be good for the workers, our loyal farmer suppliers and the local economy,'' Mr Forde said.
Lianhua Trading Group executive director Mark Ma said the company was formed in early 2014 to invest in New Zealand's beef and sheep meat industry.
Lianhua Trading's parent company, Shenzen Lianhua Enterprise Development Co Ltd, has a retail network, including customers McDonalds and the Haidilao Hot Pot chain.
Mr Ma, a permanent resident and living in Auckland for the past 15 years, said he had been charged with finding the best ways to secure further beef and sheep meat for the supply chain in China.
''We believe New Zealand farmers have the knowledge and skills best suited to producing here the high quality animals for our needs. We can add the technical expertise to get the right product for China.
''That way we are able to ensure we get the cuts that are suitable for the Chinese market, which are often different to the traditional cuts that New Zealand processors have supplied to Europe and the United States,'' Mr Ma said.
He said Shenzen Lianhua's food division had imported thousands of tonnes of beef and sheep meat into China since the 1990s from Brazil, Uruguay, Argentina and Australia, as well as New Zealand - last year, half a billion dollars' worth.
Mr Ma said Prime Range Meats had earlier this year gained China's Inspection and Quarantine Services (CIQ) specifications for food arriving at China's borders. Shenzen Lianhua principal Chang Hao, Mr Ma and the Prime Range Meats' management was planning to this week meet staff, farmers and business people.
