Seafood company New Zealand Coastal Seafoods (ASX: NZS) is set to capitalise on global interest in Kiwi seafood products with the expansion of their Christchurch facility which will enable the company to double its dried seafood production.
The facility is now five times larger than the existing one and located near Christchurch Airport which is instrumental to the company’s export strategy where the Asian market is a key customer.
“The move to the new upgraded and expanded seafood processing facility is an important milestone in executing our growth strategy, as it provides greater production capacity and importantly has the appropriate facilities and equipment to produce products for the high growth nutraceutical market,” said NZCS Interim CEO, Andrew Peti.
Initially, the facility will be used to increase production of NZCS’s flagship ling maw product and other ready-to-eat seafood products but the significant increase in size will allow for further machinery capacity as demand increases.
New Zealand’s ling maw is highly valued in China where its high protein, low fat content are believed to prevent skin aging and brighten the skin hence its significant interest from women.
A new collagen milling machine has also been installed and will be used to produce NZCS’s powdered collagen healthcare products.
With the new facility in commision, NZCS is in the final stages of certification with the New Zealand Ministry of Primary Industries for export grade food products and development for the production of nutraceutical ingredients. Once the facility is certified, the company intends on significantly expanding its research and development into seafood-based healthcare products which are highly valued in the lucrative China export market.
Coinciding with these developments is the transition of former NZCS CEO, Peter Win to the new role of GM Business Development where he will focus on increasing sales while Peti focuses on streamlining production.
Through the first half of FY20, New Zealand Coast Seafoods reported revenues of $847k.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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