Thai Union has announced that it intends to invest THB 6 billion (USD 172.4 million) in order to expand its seafood operations in 2023. Out of the total budget, THB 1 billion (USD 28.7 million) will be allocated to optimize two new factories in Thailand producing protein hydrolysate and collagen peptides. The company also plans to open new facilities in Ghana. A further THB 5 billion (USD 143.6 million, EUR 136.1 million) has been set aside for maintenance and upgrades of existing facilities.
The Thai company highlighted that it would monitor consumer behavior over the coming year, expecting that consumer spending power will remain constrained due to inflation and the continuation of the Russia-Ukraine war. In parallel, Thai Union is enhancing its business agility and flexibility while setting the target of increasing its revenue by 5% in 2023, from THB 156 billion (USD 4.48 billion) in 2022. An encouraging trend is the declining cost of logistics, which has resulted in lower operating costs.
Currently, Thai Union has three core businesses, including ambient seafood, frozen and chilled seafood, and pet care, among other products. Recently, the company announced an investment in UK-based Jellagen, a medical biotechnology company that recently secured a GBP 8.7 million (USD 10.6 million) Series A fundraising round. The investment was realized through Thai Union’s Corporate Venture Capital Fund, which invests in alternative protein development, functional nutrition, biotechnology, and other new technologies.
(Sources: Undercurrent News; Seafood Source)