Sanford Ltd said today it was in the closing stages of arrangements to buy most of the fishing assets of Auckland-based fishing company Simunovich Fisheries Ltd.
In a 2nd announcement today, Sanford said it was investing in a Korean-owned Chinese fish-processing business.
Sanford managing director Eric Barrattt said the Simunovich assets being bought included fishing & scampi quota, vessels, equipment, workshop facilities & other operational assets. Staff associated with these & other assets will be offered ongoing employment in similar positions within Sanford, but Mr Barratt said some senior positions would be lost.He expected the purchase would be completed & be effective from the new fishing year starting on 1 October, and said it would prove highly complementary to a broad range of Sanford’s existing activities.The purchase doesn’t include Simunovich’s Market Place processing facility, but processing staff there will be offered continuing employment at the Sanford plant in nearby Jellicoe St. Sanford will consider options to use the Simunovich facility under a possible lease or use arrangement.
Simunovich Fisheries is a privately owned fishing company established in 1960. It’s been at the forefront of the development of scampi fishing in New Zealand. Sanford is New Zealand’s only listed fishing company.
In his 2nd announcement, on the Chinese investment, Mr Barratt said Sanford had concluded a 25% investment in a wholly foreign-owned seafood-processing company, Weihai Dong Won Foods Ltd (WDWF), based in Weihai in the north-east of Shandong province.
It’s majority-owned by Dong Won Fisheries Co Ltd of Korea, but has other Korean shareholder. The Sanford investment is part of an increase in the company’s capital, for expansion purposes, from $US5 million to $US7.2 million.Mr Barratt said the investment was part of Sanford’s long-term strategic goals of securing the full benefits through a limited seafood supply chain to high-value worldwide seafood customers.Weihai Dong Won Foods was established in 1998 to meet increased demand for new seafood products in Japan & elsewhere. Some of its products come from New Zealand. It processes seafood into more highly valued finished products which are then exported.Sanford & Dong Won operate the San Won Ltd cold storage business in Timaru which has a sister-city relationship with Weihai. Sanford also charters 3 Dong Won fishing vessels in New Zealand.
Company websites: Simunovich