Kepak Signs Chinese Distribution Deal Worth €35m

17 May 2018 | 02.46 pm

Kepak Signs Chinese Distribution Deal Worth €35m

Food processing group inked a five-year deal with Esen Agro

17 May 2018 | 02.46 pm

Kepak Group has signed a five-year distribution contract with China-based Esen Agro Group, which is worth around €35m to the Irish food processing company.

The announcement comes a day after ABP Group said that it had secured a €50m deal with Asian restaurant chain Wowprime Corporation to supply beef to its restaurants across China.

Kepak’s deal also follows the recent announcement that Kepak’s Cavan-based pork and bacon producer McCarren Meats has been approved for exports to China.

Kepak is now planning to expedite its investment of a further €3m at McCarren Meats, adding additional throughput capacity, which will now come into production later this year. This investment will lead to the creation of a further 25 jobs at the site, bringing the total number of employees there to 295 by late 2019.

Commenting on the deal, John Horgan (pictured), managing director of Kepak Group, described the deal as a major boost to McCarren Meats. “This deal copperfastens the future of McCarren Meats, as the Chinese market represents a major opportunity to add further value to the pork products produced at this facility,” he added.

Kepak acquired McCarren Meats in 2013. Since the acquisition, Kepak has invested €15m in the business and boosted staff levels from 194 in 2013 to 270.

Kepak is an Irish meat processing, marketing and trading company, with a turnover of €950m and employing 2,800 people. The company operates beef, lamb, pork and convenience food processing facilities throughout Ireland and in the UK, with sales offices in key European, Asian and African markets.

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