The Crafar Farms deal settled yesterday. Shanghai Pengxin issued the following statement:
Two years after it made a successful bid for the 16 North Island Crafar farms, Chinese company Shanghai Pengxin has withstood all legal challenges and finally been able to settle on the properties and take possession.
The properties, have been purchased in the name of a subsidiary company, Pengxin New Zealand Farm Group. They will be managed by a new joint venture company, Pengxin New Zealand Farm Management Ltd, a 50/50 joint venture with Government-owned Landcorp, which will be the managing partner, and which is increasing staff numbers to run the 16 farms.
The 13 dairy farms and three dry stock farms total almost 8,000 hectares and currently carry some 16,000 cows. The company is committed to investing $15.7 million in the next three years to upgrade the properties and increase milk production, which will initially be sold to Fonterra.
Great stuff, now we can get on with the other aspects of the deal opening up new access and markets in China.