Singapore’s SATS buys control of Nanjing Weizhou Airline Food

Singapore-based SATS announced the acquisition of an additional 40% stake in Nanjing Weizhou Airline Food Corp., Ltd (NWA) from its founder and general manager, Luo Bo. The transaction brings SATS’ total shareholding in NWA to 90%, consolidating operational control of China’s leading producer of frozen aviation meals and integrating NWA’s best-in-class frozen meal production as well as innovation expertise. SATS first invested in NWA in 2019, acquiring a 50% stake as part of its strategy to gain frozen aviation meal expertise and product innovation capability. Since then, NWA has grown substantially, more than doubling its revenue as Chinese carriers accelerate their adoption of frozen meals in domestic operations. The acquisition advances three priorities that serve to catalyse SATS’ China Food Solutions business. First, it positions the Group to capitalise on the structural shift towards adoption of high-quality frozen aviation meals among Chinese carriers. Second, it unlocks meaningful synergies between NWA and SATS China, enabling the two to align their operating models to optimise production capacity and resources, and integrate NWA’s industry-leading frozen meal production capabilities into SATS China’s portfolio. Third, NWA complements SATS’ operations in China with its extensive local insight and network that are important for navigating the aviation landscape in China. Headquartered in Nanjing, NWA is a leading aviation food manufacturer in China, supplying frozen meals, snacks and related food products to airline customers across the country. Operating from an innovative catering hub in Nanjing, NWA extends its reach through a network of on/off-airport assembly kitchens strategically located across the country. This model has established NWA as a leading player in the Chinese market for frozen aviation meal quality and efficiency. NWA’s competitive position has proven to be resilient. Following the disruptions of the Covid-19 pandemic, the company recovered strongly and outperformed initial growth expectations. NWA has since maintained its leading market position, demonstrating competitive advantages that major Chinese carriers have increasingly recognised as they evaluate their frozen aviation meal strategies. Samuel Koh, CEO, SATS Food Solutions, said: “NWA has built something exceptional in China’s aviation food sector: a proven frozen meals platform with the operational capability, customer relationships, and production know-how to grow at scale. Its core competency lies in its innovation capabilities that seamlessly combine culinary skills with advanced food technology to deliver authentic Chinese flavours onboard aircraft. Consolidating our ownership allows us to bring NWA and SATS China together as one cohesive unit, driving efficiencies that benefit both operations. Our strategy in China remains focused on delivering best-in-class products and services to the aviation industry and NWA is a key enabler for us to grow locally while leveraging the resources of a leading player in the local market.” Luo Bo said: “Over the past seven years, SATS and NWA have built a strong foundation together, and I am proud of what the team has achieved. This acquisition opens an exciting new chapter, and I look forward to continue working with SATS to grow NWA and SATS China into businesses that serve the evolving needs of Chinese aviation at home and abroad.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]