GXYX ASF

active

Guangxi Yangxiang Co., Ltd (“GXYX” or the “Company”) is one of the leading feed mills and hog producers in China and an existing IFC client (#38720 - https://disclosures.ifc.org/#/projectDetail/ESRS/38720). GXYX was established in 1998 in Guigang City, Guangxi Autonomous Region. Its main business segments include: i) breeding and commercial farming of pigs, and ii) manufacturing of pig feed. The Company has 25 sow farms, 4 boar stations, and 12 feed mills mainly located in the frontier provinces in China. The Company has in-house pig breeding capacity of 140,000 sows and 5,000 boars. The company’s pig farms are mainly located in Guangxi and Liaoning provinces. The Company currently works with over 1,000 contract farmer households with an average household producing 1,000 pigs.To expand its hog production capacity and strengthen its vertical integration, GXYX launches a US$264 million expansion project in Yaji Mountain Forest Park, Guangxi Province, adjacent to its existing multi-story pig farms. The scope of this project entails the construction of 3 new multi-story pig farm buildings with an annual production capacity of 33,000 breeding sows and 600,000 finishers (the “Project”). It will be implemented over a four-years period. The location of the proposed greenfield pig farms is known, and the land leases has been secured (ref. Yangxiang leases land from Yajishan State Forest Farm in Guigang City, Guangxi for 70 years since 2006). The proposed IFC investment is up to US$ 80mn equivalent RMB A loan. IFC’s use of proceeds will support expanding pig farming operations. The project has been already initiated and the construction phase of the new pig farms is expected to start in 4Q 2020 and to be completed within a 12 months period, depending on the COVID 19 situation. The proposed investment is part of IFC Agribusiness’s African Swine Flu (ASF) Regional Recovery Program.