Taiwan food processor, Showa Sangyo of Japan set up JVs to process eggs, mill flour

19, Dec. 2019

DaChan Great Wall Group President Charles Han (L) and Showa Sangyo Co. President Kazuhiko Niitsuma, seals a deal on Dec. 17, to enhance cooperation in egg and flour production in Taiwan.
DaChan Great Wall Group President Charles Han (L) and Showa Sangyo Co. President Kazuhiko Niitsuma, seals a deal on Dec. 17, to enhance cooperation in egg and flour production in Taiwan.
TAIPEI, NNA – Taiwan food maker DaChan Great Wall Group entered a deal with Japanese grain products and food maker Showa Sangyo Co. Tuesday to set up ventures that will process eggs and mill flour for consumers in high-end markets.

DaChan plans to sell its egg cultivation department to a subsidiary, Z.Y. Food Co., for 707 million New Taiwan dollars ($23.2 million), and Showa Sangyo will take a 35 percent stake in the subsidiary, the Taiwanese parent company said Nov. 8. Both sides will inject capital.

The joint venture plans to build plant in Changhua County in central Taiwan next year through early 2021. The facility that washes and processes eggs is designed to produce 2 million washed eggs per day.

DaChan’s co-invested subsidiary will become the largest egg processor in Taiwan, and will elevate its daily production capacity up to 3 million eggs. The company expects market share to increase to 10 percent from 7 percent now, local media quoted DaChan’s president Charles Han as saying Tuesday.

A separate DaChan subsidiary, flour miller Kouchan Mill Co., will add NT$610 million to its own budget, and Showa Sangyo will take a 40 percent share of the same.

Kouchan’s market share now ranks around seventh and produces more than 100 items made from flour. It plans to double the number of offerings through the new tie-up and make healthy, relatively expensive goods that are high fiber and low-glycemic, according to local media reports.