Frontmatec completes Xinglong acquisition in China

Frontmatec has completed the acquisition of China’s Jining Xinglong Food Machinery Manufacturing firm (Xinglong) for an undisclosed price.

The Danish customised automation solutions developer for the food industry entered into an agreement with the Chinese company to acquire its business in November 2017.

Xinglong supplies equipment to the red meat industry in China. The completion of this transaction has established its footprint in the Chinese market with the addition of a large-scale local production setup.

Frontmatec CEO Henrik Andersen said: “By combining the two companies, we have significantly strengthened our position on the Chinese market, as we can now offer access to the advanced equipment and solutions of Frontmatec for local production and market adaptation.

“With the close relationships to the leading food companies in China, built and nurtured so carefully by the skilled management team of Xinglong, I am convinced we have a strong platform on which to further grow our market presence in China.”

The Chinese company will continue to serve the market from its base in Jining under its existing name, but will later be incorporating Frontmatec’s logo and will become an integrated entity of the Danish company.

Xinglong is expected to play a key role in improving Frontmatec’s presence in China.

Xinglong general manager Andres Li said: “I am excited about the opportunity to grow Xinglong to become an even stronger player in the Chinese market.

“I am confident that the combination of Xinglong’s strong market knowledge and transfer of technology from Frontmatec will result in significant growth rates going forward.”

Frontmatec is also planning to relocate its Shanghai production facility to Xinglong’s factory in Jining while retaining certain activities such as sales, engineering and project management in Shanghai.