Netafim™ Takes Major Step in Increasing Investment in China

May 17, 2016

TEL AVIV, May 16, 2016 – Netafim, the global leader in smart irrigation solutions for a sustainable future, recently inaugurated its first production plant in China. Israel’s Ambassador to China Matan Vilnai, Ningxia Vice Governor Zeng Yichun, and Director of the Ningxia Water Bureau Wu Hongxiang were among those attending the inauguration ceremony.

Located in Yinchuan, capital of the northwest Ningxia Hui Autonomous Region (Ningxia), the facility will leverage Netafim’s latest patented technology to produce the world’s most advanced drip lines along with full irrigation solutions. Underscoring Netafim’s greater commitment to China, the new plant will serve the country’s fast-growing water-saving irrigation industry; more and more farmers are investing in high-quality systems that enhance crop yield and quality, while reducing water, fertilizer and labor costs. The Chinese market maintains huge potential given that government policies favor agricultural and water-saving irrigation technologies – which are at the core of Netafim’s expertise – that aim to meet the population’s increasing demand for high-quality food.

Incorporating Netafim’s state-of-the-art technology, the ISO-certified Ningxia plant includes a training center for irrigation design and agronomy, as well as a quality laboratory to ensure that its products meet the highest international standards.

With low annual rainfall of 200mm on the one hand, and easy access to the Yellow River on the other, Ningxia is a key target for government investments in water-saving technologies. Reflecting this policy, Ningxia officials visited Netafim in 2014 to discuss its agricultural vision for the region. Based on these discussions and subsequent studies of the region, Netafim built the cutting-edge manufacturing plant in Ningxia, which will serve as the company’s initial base for investments in the region and in North West China.

Ningxia is home to a promising wine industry that is rapidly gaining an international reputation, and has received massive investments in an effort to create a solid base for producing high-quality wines. Given the importance of first-rate and well-managed irrigation and fertigation technology in producing quality wines, together with Netafim’s exceedingly high share of the global wine irrigation market, the company’s decision to invest in Ningxia is a natural step. Netafim has already collaborated with the US winery Domaine Chandon in building a high-end vineyard in Ningxia, and is partnering with a regional wine producer that serves Chinese embassies worldwide.

“The opening of this top-of-the-line facility is testimony to Netafim’s commitment to investing in China, one of our strategically important markets with significant growth potential,” said Netafim CEO Ran Maidan. “We greatly appreciate the support given by the Ningxia government, and hope to contribute to its efforts in carrying out its ambitious agricultural development plans.”

“Our new plant provides a solid foundation for Netafim’s current and future activities in China,” said Netafim Head of APAC Division and China Chairman Stephan Titze. “Now we can supply high-quality, industry-standard full irrigation solutions that deliver significant water savings to farmers and governmental customers throughout Ningxia and North West China.”

“The launching of Netafim’s plant provides us with superior technological support in dry farming, water-saving irrigation and related equipment,” said Li Jianhua, Ningxia Party Secretary, at an official government meeting with Ambassador Vilnai. “We hope to enhance our cooperation with Netafim by importing new technology, offering education and training, and strengthening our skills as we continue to expand in this field.”

“Israel and Ningxia have created a solid foundation for scientific and technical cooperation in agriculture,” Ambassador Vilnai said. “Netafim’s new plant is yet another milestone in this partnership. We look forward to continue supporting one another, and focusing on projects that will bring Israeli irrigation technology to other areas throughout China.”

 

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