French Fry manufacturer Aviko, a subsidiary of Royal Cosun and Snow Valley Agriculture have agreed to end their joint venture in China.
Both partners concluded that their views on the growth in the Chinese market differ to such an extent that there is too little basis to continue successfully together.
On the basis of constructive negotiations, the partners have agreed that Snow Valley Agriculture will take over the Aviko share package of 51%. Aviko will pursue its growth ambition in China on the basis of alternative sourcing lines.
This agreement requires permission from the Chinese authorities. The transaction is expected to be completed by the end of this year.
Snow valley built a french fry factory in China in 2012 with help of Aviko. The potato processing plant started production in 2013.
In 2014, Aviko increased its interest in the joint venture to 51 percent.
The company is marketing its french fries using the brand names Aviko, Diamond,Tulip and Windmill.
