Kaida’s $115m potato plant in out­put tri­als

China Daily (Hong Kong) - - BUSINESS - By JING SHUIYU in Bei­jing and YUAN HUI in Ho­hhot jing­shuiyu@chi­nadaily.com.cn

The first phase of Bei­jing Kaida Hengye Agri­cul­tural Tech­nol­ogy De­vel­op­ment Co Ltd’s new and fully au­to­mated potato pro­cess­ing plant in Ulan­qab, the In­ner Mon­go­lia au­ton­o­mous re­gion, will start full-scale out­put in March, a com­pany of­fi­cial said.

Ac­cord­ing to Guo Yonghui, gen­eral man­ager of the com­pany’s op­er­a­tions in In­ner Mon­go­lia, Kaida has in­vested 500 mil­lion yuan ($72 mil­lion) so far in the project.

The first phase of the new plant will have an an­nual ca­pac­ity of 100,000 met­ric tons. Pro­duc­tion tri­als started three months ago. The se­cond and fi­nal phase will cost 300 mil­lion yuan and will be com­pleted in 2018.

This is the first time such modern tech­nol­ogy has been used in Ulan­qab city, also known as the “City of Pota­toes”, Guo said. “We de­cided to lo­cate the plant in Ulan­qab be­cause the place is rich in high-qual­ity pota­toes and the lo­cal govern­ment’s poli­cies are sup­port­ive.”

An orig­i­nal equip­ment man­u­fac­turer or OEM, Kaida makes veg­etable-based snacks for other brands.

Given the com­bi­na­tion of ge­o­graph­i­cal ad­van­tages and up­graded tech­nol­ogy, Kaida’s profit mar­gin may in­crease now, Guo said.

Com­pared to its erst­while plant in Fang­shan district of Bei­jing, Kaida’s new and up­graded fac­tory would save 20 per­cent to 30 per­cent on costs like raw ma­te­ri­als, lo­gis­tics and staff, Guo said.

The new plant will cover an area of 194 mu (12.93 hectares) and the an­nual out­put value will reach 640 mil­lion yuan af­ter com­ple­tion in 2018.

Yu Guangjun, re­search fel-

We de­cided to lo­cate the plant in Ulan­qab be­cause the place is rich in high-qual­ity pota­toes and the lo­cal govern­ment’s poli­cies are sup­port­ive.” Guo Yonghui, gen­eral man­ager of Kaida Hengye Agri­cul­tural Tech­nol­ogy De­vel­op­ment Co Ltd’s op­er­a­tions in In­ner Mon­go­lia

mil­lion yuan

the ex­pected an­nual out­put value of the new plant

low at the In­ner Mon­go­lia Academy of So­cial Sci­ences, said in a pre­vi­ous in­ter­view with China Daily: “It’s very im­por­tant to es­tab­lish a modern agri­cul­tural pro­duc­tion sys­tem, which would surely stan­dard­ize the op­er­a­tion process and en­hance pro­duc­tion ef­fi­ciency.”

Sta­tis­tics from Ulan­qab’s Agri­cul­ture Bureau showed the city in­creased the planted area for pota­toes to 3.9 mil­lion mu this year. The out­put of pota­toes is ex­pected to grow 26 per­cent to 4.45 bil­lion kg this year.

Guo fore­cast that in the fu­ture, the com­pany’s or­der vol­ume from do­mes­tic part­ners would in­crease faster than that from over­seas.

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