March 9, 2010

COFCO boosts soy capacity by 40% to match Wilmar

China's largest grain trader COFCO Ltd. will expand soy crushing capacity by more than 40% in the nation, which will match the biggest producer Wilmar International Ltd.

Annual capacity will rise to 10 million tonnes, or about 25% of the country's crushing volume, from 7 million tonnes by the end of 2010 or early next year, COFCO chairman Ning Gaoning said.

Soy imports by China, the world's largest consumer, soared to a record last year and purchases will keep expanding because of a growing urban population, Sichuan New Hope Agribusiness Co. said March 6. COFCO's expansion plans may challenge the market share of Singapore-listed Wilmar.

China Agri-Industries Holdings Ltd., a Hong Kong-listed unit of COFCO, rose 0.4% to close at HK$10.72. Shares of Wilmar rose 2.3% to SG$6.78 in Singapore. Noble Group Ltd., the third-largest crusher in China, rose 2.2% to SG$3.33.