China's Henan Bingxiong Refrigerated Truck Co. (Ice Bear) has raised a new round of financing from Baird Capital Partners Asia, CCI, and CCI company Great Dane. The capital will support the expansion of Ice Bear's manufacturing facilities in Henan and Shanghai.
Signing ceremony in China finalizing the Ice Bear investment. Pictured left ro right: Dean Engelage, Great Dane executive VP; Ji Baozhi, Ice Bear Shanghai plant GM; and Brett Tucker, partner, Baird Capital Partners Asia.
As part of the investment, Ice Bear will leverage Great Dane's global operating resources and engineering talent to grow its market position in the domestic Chinese market.
Established in 1993, Ice Bear manufactures insulated and refrigerated trucks designed to carry
perishable freight at specific temperatures. The company currently has a leading market share
position in China, with a diversified national customer base.
"For the last three years we have been working closely with Great Dane and CCI on identifying opportunities in the cold chain industry in China," said Brett Tucker, partner, Baird Capital Partners Asia. "We believe Great Dane's wealth of operating and industry experience, combined with our on-the-ground investment and operating team in China, will bring significant value to Ice Bear."
The cold supply chain market in China is underdeveloped compared to developed countries. In China, most perishable foods, such as meat, fruits, vegetables, dairy and soybean products are shipped by non-refrigerated trucks.
It is estimated that the lack of effective cold supply chain systems in China results in 20% to 40% food spoilage loss, valued at more than $65 billion annually. Rising income levels and higher food safety demands by both the Chinese government and Chinese consumers are expected to drive a more sophisticated cold supply chain and the need for refrigerated trucks.
As part of the transaction, Dean Engelage of Great Dane and Brett Tucker of Baird Capital Partners
Asia will join the Ice Bear Board of Directors.