April 19, 2007

Noble Group buys China soy crusher in Jiangsu province for US$29 million

Singapore-listed commodities firm Noble Group has bought a soybean crusher in Nantong, Jiangsu province, for US$29.4 million.

The facility, with a daily capacity of about 1,600 tonnes, was bought from Nantong Baogang Oil & Fat Development Co. Ltd., a private crusher which went bankrupt.

A soy crisis in South America in 2004 had pushed many crushers, including Nantong, into financial difficulties and lured foreign companies to buy up most of China's independent crushers.

Noble has been one of the most active buyers, having bought up crushers in Chongqing, Shandong and Guangxi.

The acquisition this time round would be funded from Noble's internal cash resources and bank loans.

The Baogang plant had previously been leased by Cargill Inc., which last year started operations at a 5,000-tonne-per-day-plant also in Nantong.

Strategically located on the Yangtze River, the city allows access to Shanghai and surrounding areas.