Fulida grabs more of Wellard as Lu comes on board


Chinese company the biggest shareholder with local firm boosting China expertise

Fulida grabs more of Wellard as Lu comes on board
Fulida’s headquarters in Hangzhou.

 

Livestock export logistics firm Wellard’s future is taking an even more north-Asian flavour as China’s Fulida Group strengthens its holding in the Australian company.

Fulida’s interest in Wellard became serious last September when Wellard CEO Mauro Balzarini sold his 16.58 per cent stake in the company for $15.8 million.

Fulida has now raised its share from 19.99 per cent to 24.49 per cent to gain the largest portion of the company.

The move comes a day after Wellard announced Chinese businessman Kanda Lu as has been appointed an executive director of the company.

"The China market provides untapped opportunity for Australian live cattle exporters and producers," Lu says.

"Like all new trading relationships, it will take time to establish, but when it does the possibilities are exciting," he said.

Lu is Fulida’s assistant to the chairman and "possesses considerable expertise in Chinese commerce, distribution and marketing."

His former positions include of Morgan Stanley Huaxin head of sales, Ping An Securities Institutional Clients vice president, Dacheng Fund institutional asset management senior manager and business development associate (NSW branch) of Australian Finance Group.

A Macquarie University graduate, Lu obtained a Master’s degree in International Relations with the degree of Master of International Trade and Commerce Law, and a Bachelor’s degree in Commerce.

In addition to his selection to the Wellard board, Lu has been appointed as head of China initiatives.

He will also be MD of Wellao, Wellard’s 100 percent-owned Chinese subsidiary , and responsible for the development and growth of Wellard’s entry into the Chinese beef cattle market.

"The company’s core business supplying existing operators is being implemented immediately, while the timing of Wellao’s development will be dictated by market conditions," Wellard says.

Wellard’s strategy for China involves working with third party importers as well as developing its own supply chain through Wellao’s investment in feedlots and an abattoir.

"Wellard has been exporting cattle to China for a decade now as a supplier of breeding cattle," Balzarini says.

"The new protocol for slaughter and feeder cattle is an enormous opportunity to expand into this huge market.

"The skills Kanda brings to Wellard and Wellao, combined with his intimate knowledge of Chinese market dynamics as well as asset and managements skills, sets Wellard apart from its competitors and will enable it to capitalise on its potential."

 

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