The Capespan Group has taken a second major step in developing its Far East business with the acquisition of a 25 per cent stake in Golden Wing Mau, a Chinese fruit trading and distribution organisation.
Announcing the deal, Capespan’s acting managing director Louis Kriel said the deal meant Capespan could now fulfil its growth aspirations for China and push forward with plans to expand its activities in the lucrative Far East markets.
The move follows Capespan's the acquisition of full ownership of Hong Kong-based company Metspan, the Capespan Group’s Far East marketing arm in July 2010.
The Golden Wing Mau Group (GWMG) established itself on mainland China in the late 1990s and is focused on fruit production, packing, storage, wholesale, export, import and distribution to retailers.
'Under management of CEO Mau-Wah Liu, the company developed supply relationships with some of the leading retailers who set up in the Chinese market,' Mr Kriel said. 'In addition, the company also exports to more than 30 countries globally.'
Mr Kriel added that the fast-growing and strong Chinese economy had resulted in improved living conditions, increased disposable income, fruit consumption growth and a great platform for fruit business development.
'By enlarging our Far East footprint, Capespan’s opportunities lie in: exporting and distributing South African-sourced produce into mainland China; procuring and exporting Chinese produce into the Capespan global marketing and distribution network; exporting globally procured product into China; and packing, adding value, as well as distributing both domestic and imported product in China to the emerging retail sector,' he explained.
He also pointed out that supermarkets were set to become the main fruit and vegetable sales channel in China in the foreseeable future.
'Capespan is proud to be associated with the vibrant Golden Wing Mau Group and we’ll continue strengthening and expanding our fruit expertise in the growing Chinese market,' he said.
Mau-Wah Liu commented: 'Capespan is a trusted, established, global fruit expert with strong, recognised brands. As such, it’s the perfect partner for Golden Wing Mau and the two companies will be developing its synergies further in years to come.'
