Frontmatec is set to acquire Jining Xinglong Food Machinery Manufacturing Co., Ltd. to enhance its market presence in China and leverage advanced technologies in the red meat processing sector.

Target Company Information

Frontmatec has signed an agreement to acquire Jining Xinglong Food Machinery Manufacturing Co., Ltd. (referred to as "Xinglong"), a prominent supplier in the red meat industry in China. Founded in 2001, Xinglong specializes in providing cost-effective slaughtering equipment and technologies tailored for livestock and poultry. The company is particularly recognized for its mid/high line speed slaughtering solutions, primarily serving domestic customers, though it also caters to clients beyond China. With its headquarters located in Jining, Shandong province, Xinglong employs 234 professionals dedicated to enhancing the efficiency and safety of meat processing.

This acquisition not only enables Frontmatec to penetrate the expansive Chinese market but also establishes a local production facility specifically designed to meet the demands of this region. Frontmatec’s commitment to transferring advanced technology to Xinglong is expected to enhance the latter's capabilities significantly.

Industry Overview in China

China stands as the largest market globally, accounting for approximately 50% of all pigs slaughtered worldwide. The red meat sector has been witnessing rapid growth, bolstered by rising demand for aut