Malteurop China acquisition: Key takeaways
- Malteurop has acquired Chunlei Malting, adding a second Chinese site with annual capacity of 220,000 tonnes
- The investment will serve Chinese brewers and customers across Asia and wider export markets
- Premiumisation and more sustainable manufacturing underpin the company’s expansion plans
Though only announced in late October, the summer saw closure on a substantial deal for French malt producer Malteurop (欧麦). They acquired Chunlei Malting (春蕾麦芽). The buy-up expands Malteurop’s presence in China’s beer supply chain, adding a facility near Yancheng (盐城), Jiangsu capable of producing 220,000 tonnes of malt per year.
China is already one of the world’s major malt exporters
China is already one of the world’s major malt exporters, processing substantial imports of barley into the brewing ingredient. This plant is Malteurop’s second in China and joins an operation opened in Baoding (保定) 30 years ago. Malteurop says the acquisition strengthens its ability to serve brewers in China, but its hopes aren’t simply domestic.
Asia and wider export markets can be served too, thanks to nearby export infrastructure. The company also plans to work with local partners to support premiumisation across the barley–malt–beer industry.
There’s also a sustainability element to the new plant
There’s also a sustainability element to the new plant. They’re heating it using locally sourced biomass, mainly rice straw, while wind and solar electricity also play a role supported by battery storage.
The Dao View: More than added capacity
The value in this goes well beyond just adding capacity. Malteurop’s acquisition exposes the brand to two sources of demand: Chinese brewers and export customers. Both are valuable markets for the brand, and while they reduce reliance on domestic growth, the plant’s green energy systems will offer a strong edge when it comes to marketing decarbonisation.
