Keytone Dairy Corporation Limited (ASX:KTD) Chairman Bernard Kavanagh and CEO James Gong discuss plans to list on the ASX.
Jessica Amir: Hi I’m Jessica Amir for the Finance News Network. Joining me now from soon-to-list New Zealand dairy and nutritional powder product manufacturer and exporter, Keytone Dairy Corporation, is Chairman, Bernard Kavanagh and CEO, James Gong. Gentlemen, welcome.
James Gong: Hi Jessica.
Bernard Kavanagh: Hi Jessica.
Jessica Amir: First over to you James. Just tell us about the company and a little bit about your background?
James Gong: My name is James Gong, I’m the CEO and founder of Keytone Dairy Corporation. I was born in Guangzhou China and I moved to New Zealand in the 1990s. So I was both educated in China and New Zealand. I have 15 years experience in the dairy industry. Before founding Keytone, I have been working in a resident dairy company for 11 years as the head of sales for Asia, where I built a rival business network. So our export is basically covering Asia.
Jessica Amir: James the company’s achieved quite a lot. Can you tell us about the key highlights?
James Gong: In 2013 May, we started building the purpose-built plant in Christchurch, New Zealand. By the end of 2013 in December, we obtained the RMP Certification, which is a food safety program under the New Zealand Government. So by May 2014, we obtained the CNCA registration, which is a certificate to export to China. And then in 2012, we also won an international award in Europe, which is our FaceClear product for Natural Beauty Award. And back in 2015 in March, we also won the BNZ Business Award for the company.
Jessica Amir: Just tell us about your products and where they’re sold?
James Gong: Our products cover retail and industrial markets. For retail products, we have Kiwifruit Milk Powder, Skim Milk Powder, Whole Milk Powder, we have Colostrum Milk Powder as well. We have a very niche product called FaceClear product for health supplement, which is sold in Europe as well. So our products supply to local supermarkets in New Zealand and also export to supermarkets overseas, a lot into China.
Jessica Amir: James what excites you about Keytone?
James Gong: There is increasing demand for New Zealand dairy products for markets like China, year-on-year. Currently Keytone is building a purpose-built facility. The new facility will enlarge our capability of product holding as well as product capability. And the new building is located in Izone Business Park, the largest industrial park in New Zealand, where rail and land port facilities are already in place. So with this new facility, we will increase our productivity as well as expansion of our product range. Most importantly, Keytone’s future success is about nurturing and continuing our global sales network. And leverage our deep understanding of the Chinese market, as well as maintaining our longstanding customer relationships.
Jessica Amir: Bernard, you’ve had a very impressive career across the industry, holding executive positions at Warrnambool Cheese & Butter and Saputo. What really excites you about this industry?
Bernard Kavanagh: The global dairy business continues to grow and it will grow at an increasing pace, particularly in China and Southeast Asia, in the coming years. There will be lots of opportunities in the dairy, confectionary, bakery, nutritional, nutraceutical, sports and other sectors. Keytone is perfectly well positioned to pursue those opportunities.
Jessica Amir: Now to your IPO. Just tell us what you’re offering investors, how much you’re looking to raise and when do you plan to list?
Bernard Kavanagh: We’re offering investors the opportunity to invest in a small but fast growing company, that’s going to significantly increase its market share in China and Southeast Asia. We’re looking to raise $20 million, the IPO is to be finalised by the end of February and the listing will occur mid to late March.
Jessica Amir: Where will the funds go?
Bernard Kavanagh: The funds will be invested in capacity, where Keytone will significantly increase the volume of products that it’s able to supply, into those fast growing markets. We will also invest in capability, technology and people.
Jessica Amir: Bernard, just tell us how can people get involved?
Bernard Kavanagh: People could visit Keytone’s website or contact their broker.
Jessica Amir: Last question Bernard. What do you attribute the future success of the company to?
Bernard Kavanagh: The Chinese and Southeast Asian markets are growing at an incredible pace, that’ll continue in future years and Keytone is perfectly positioned to capture new opportunities. It has in place the management team, who have the skills and capability to make the business a success in the future.
Jessica Amir: Bernard Kavanagh, James Gong, thank you so much for the introduction and good luck with the IPO.
Bernard Kavanagh: Thank you very much Jessica.
James Gong: Thank you Jessica.