LSG Sky Chefs signs new joint venture in Urumqi, China

Second partnership with Hainan Airline Group

June 30, 2005

HAIKOU – Yesterday, HNA Air Catering Holding Co Ltd. and LSG Sky Chefs signed a joint-venture contract to establish a new ca-tering facility in Urumqi, located 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 Co Ltd and 49% by LSG Asia GmbH.

Urumqi is a regional hub and a major Chinese 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 2.500 m2 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.”

LSG Sky Chefs is the world’s leading provider of integrated in-flight solutions, including catering, procurement, equipment management and Total In-flight Service Management. LSG Sky Chefs caters 270 airlines from more than 200 customer service centers in 48 countries.

Hainan Airline Group, ranked 4th in airline industry in China, is an enterprise group registered with the State Administration of Industry and Commerce in January 2000. It flies more than 480 domestic routes covering a network of 70 major cities in China.

The LSG Group is the world’s leading provider of end-to-end on-board products and services. These include catering, onboard retail and entertainment, onboard equipment and logistics, consulting and lounge services. The company’s dedication to culinary excellence and expertise in logistics has led to its successful entry into adjacent markets like train services and convenience retail. Its catering activities are marketed under the “LSG Sky Chefs” brand name, through which it delivers 591 million meals a year and is present at 211 airports in 50 countries. In 2015, the companies belonging to the LSG Group achieved consolidated revenues of € 3.0 billion.