Unga Group Plc #ticker:UNGA has received regulatory approvals to form animal feed joint ventures in Kenya and Uganda with Dutch multinational Nutreco International.
Subsidiaries of the Nairobi Securities Exchange-listed firm will own the joint ventures on a 50/50 basis with Nutreco.
Kenya-based Unga Farm Care (EA) Limited and Unga Millers (Uganda) Limited are contributing assets to the joint ventures which will be managed by Nutreco.
“Unga Group Plc is delighted to announce that it has received regulatory approval for its partnership with Nutreco, to form two joint ventures which will help meet the growing demand for high quality animal nutrition products in the East African Region,” the company said in a statement.
The joint ventures are named Tunga Nutrition.
Tunga Nutrition Kenya plans to increase production capacity at its fish feed plant in Nairobi, trading using the Skretting and Fugo brands.
Tunga Nutrition Uganda will make use of Unga Millers’ dormant flour mill in Kampala, converting it into a modern plant producing animal feeds and concentrates. Its products will be sold under both Trouw Nutrition’s Hendrix and Unga’s Fugo Brands.
“We are proud to be partnering with Unga Group, and working together to share our knowledge of the animal nutrition and aquaculture markets,” said Pieter Bastiaanssen, the managing director Middle East & Africa at Nutreco.
“Unga Group possesses great expertise in the East African region, and we are delighted to join forces as we look to meet the growing demand for high quality protein there.”
Senior managers are being appointed to lead the new joint ventures. The parties say they have teamed up to participate in the expected increase in demand for animal feed in the region in the coming years.
“After many years of working with Nutreco as a supplier, we are thrilled to have elevated our relationship to the next level through the Tunga ventures,” said Joseph Malel Choge, Unga Group’s managing director.