Food importer Heng Tai Consumables Group is spending nearly $200 million to build facilities in Shanghai and Zhongshan, according to chief executive Chu Ki. The company, with more than 95 per cent of sales coming from its mainland businesses, is building a logistics, processing and repackaging plant in Shanghai that will cost $33 million in the next 10 months on top of the $44 million it has already invested in the past two years. Mr Chu said Heng Tai was aiming to capitalise on the expanding hotel and restaurant business in the mainland's biggest city to grow its wholesale catering business. 'At the moment, whenever there are any large-scale trade fairs or expos in Shanghai, visitors find it hard to book hotel rooms,' Mr Chu said. 'As the city is clearly in need of more luxury hotels, there will be a growing demand for high-quality, imported wet food. We are building the right facilities to store and transport these foods.' While the company has long been focusing on importing and handling high-quality dry food, such as shark fins and dried abalone, it is now attempting to shift more resources and investment to the less competitive wet food market. Wet food includes frozen meat and fish and dairy products. The firm has also invested $28 million in the construction of a logistics centre in Zhongshan, a project that is jointly owned by a mainland company and a Hong Kong partner. Mr Chu said Heng Tai was looking to inject a further $80 million in the project over the next two years. The company would gradually increase the scale of its wet food business, he said. Last year, wet food contributed 20 per cent of its $51.68 million net profit.