Savola, Thai Union set to invest $50 mln in JV

Thai Union Frozen Products (TUF), a seafood processor, said Tuesday it plans to invest $30 million to $50 million in a joint venture (JV) with Savola Foods Co., a wholly-owned subsidiary of Saudi Arabia’s Savola Group over the next two years.

The new entity will market a wide range of seafood products in the Middle East, the Thai company said in a statement. 

The partners are aiming for $400 million in sales in the next three to four years from the new joint venture.

The product lines for the JV will include all seafood products, including ambient, frozen, chilled seafood, as well as ready-to-eat meals.

The JV will operate in Saudi Arabia, United Arab Emirates, Oman, Kuwait, Bahrain, Qatar Jordan, Lebanon, Syria, Iran, Iraq, and Egypt.

The project will capitalize on TUF’s sourcing, processing, and R&D capabilities, as well as the sales, marketing, and distribution experience of Savola Foods.