LSG Sky Chefs signs new Joint Venture in Urumqi, China

HNA Air Catering Holding and LSG Sky Chefs signed a joint-venture contract, Wednesday, to establish a new catering facility in Urumqi, in the Xinjiang Province in the northwest of China. The shares in the new Xinjiang HNA LSG Sky Chefs Co Ltd are 51% owned by HNA Air Catering Holding and 49% by LSG Asia. 

Urumqi is a regional hub and a major passageway to link up with Asia, Europe and the Middle East. It is the bridgehead of west China and, due to its richness in natural resources, a magnet for investments in heavy industry. Traffic at the airport has grown quickly to around four million passengers in 2004 and is expected to maintain double-digit growth for years to come.

The new facility will be 2,500m2 in size and will have the capacity to produce 5,000 to 6,000 airline meals a day. The targeted start-up date is October 2006.

"We highly appreciate the trust of Hainan Airlines as we enter into our second long-term partnership. Our relationship has been built on the success of our first common joint venture, which we established in Sanya, Hainan in 2003," said HK Cheung, Chief Operating Officer Asia/Pacific region. "Urumqi will be our tenth location in China and our presence in this part of the country is an important step in our China Expansion Program."

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