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Danish feed firm kicks off construction of $10 million plant in Zambia

'The African market will, without a doubt, grow significantly in the coming years,' executive says.

Danish fish feed producer Aller Aqua started construction of its new 50,000-metric ton capacity feed plant in Siavonga, Zambia, in December.

The company expects to produce its first feed in September this year.

While the factory is under construction, Aller Aqua Zambia has made its first sales agreement with one of the largest tilapia producers in the world, Yalelo Limited.

Yalelo plans to grow 30,000 metric tons of tilapia in Zambia within the next few years. This rapid expansion will help secure Aller Aqua Zambia's success in the African country, it said.

Aller Aqua Zambia Limited is owned by Aller Aqua Group and Oakfield Holdings Limited, represented by CEO Adam Taylor who will be chairman of the company. Henrik Halken, group vice president at Aller Aqua Group, will take the position as vice chairman and other board members are Carsten Jorgensen, group vice president of Aller Aqua, and Bryan McCoy.

A first board meeting was held in Copenhagen.

Halken and Jorgensen are appointed to lead the Zambian company from the Danish side. Halken is in charge of Aller Aqua’s factories on the African continent, whereas Jorgensen is chief financial officer and handles the finances.

Aller Aqua Group has a clear and expansive strategy for Africa, and Halken said the group is in "rapid expansion.

"Since the company began producing fish feed for aquaculture more than 50 years ago it has achieved constant growth," he said.

In addition to the factory in Denmark, the company built factories in Poland in 2001, Germany in 2007 and Egypt in 2015. Currently, it is building another plant in China and is extending the capacity in Egypt with a third production line

This will increase the capacity in Egypt substantially. Both of the new factories as well as the third production line in Egypt are expected to be inaugurated in 2017, Halken said.

A total of $10 million (€10.9 million) are invested in the new plant in Zambia.

"With the investment in Zambia, we will be the market leader in Africa in terms of modern and environmentally friendly fish feeds for aquaculture," Halken said.

"This will enable us to expand our sales not only in Zambia but also the surrounding countries. During recent years Aller Aqua Group has started sales companies in both Nigeria, Ghana and Kenya," he added.

"The African market will, without a doubt, grow significantly in the coming years," Halken said.

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