Guangzhou China Nov. 4, 2010 - H.J. Heinz United Company (Heinz United), the subsidiary of H.J. Heinz Company (Heinz) located in Guangdong Province cooperated by Heinz and its Chinese partners – Guangdong Yantang Dairy Co., Ltd. (Yantang Dairy) and Guangdong United Food Enterprises Centre (Guangdong Food Centre), will restructure the company's shareholding soon.
An announcement, issued by Guangdong Food Centre, declared its intention to sell 8.482% of Heinz United's shares, meanwhile, 12.343% of Heinz United's shares held by Yantang Dairy will be bundle sold.
According to Mr. Ma from Heinz United, approaching the end of the original contract, Chinese partners plan to end the cooperation especially under the context of Guangzhou City's "from secondary industry to tertiary industry" plan.
The government of Guangzhou City launched its "From secondary industry to tertiary industry" plan in 2005. According to the plan, the local government plans to relocate about 295 plants before the end of 2015, and Heinz United has to relocate its plant before the end of October 2014.
Mr. Ma reveals that Heinz United is searching a new place to relocate its plant now. The withdrawal of Chinese partners' investment won't affect Heinz United's development. Besides, Heinz United plans to purchase all the shares by itself, suggesting that Heinz may expand in China by operating independently. Such strategic transition can be proved by the fact that Heinz acquired all the shares of its subsidiary company located in Qingdao, which once cooperated with two local partners in 1999.
Source: CCM International