May 8, 2006

Cargill plans new rapeseed crushing plant in France
 

Cargill would be investing EUR 50 million (US$63.7 million) in the construction of a rapeseed crush plant in western France. The investment would be made through a joint venture with Sofiproteol, a financial holding company specialising on the development of oilseed production and outlets for their producers.

Cargill will be the majority shareholder and assume all managerial and operational responsibilities. Construction is expected to start by the end of 2006.

Rapeseed oil production is expected to be 250,000 tonnes a year, utilizing 600,000 tonnes of rapeseed sourced locally. 

350,000 tonnes of rapeseed meal would also be produced annually and sold to the animal feed market.

Rapeseed oil is the main ingredient in the production of the biodiesel. The majority of the crushed oil at this new plant would be transferred to Cargill's strategic partner Sofiproteol for use in biodiesel production.The investment will allow the two companies to meet the quota allocated to them by the French government.

The French government has set the use of biofuels at 5.75 percent of all fuels by 2008, with the target rising to 7 percent by 2010.

Herv¨¦ De Praingy, head of Cargill's oilseed crushing and refining operations in France said the investment demonstrates Cargill's commitment to biofuels production and agriculture.

The new plant will supplement Cargil's existing food operations in St Nazaire, which specialises in the crushing and refining of sunflower oil and which represent more than half of the national production of sunflower oil. Meanwhile, Cargill's plant in Brest will focus on rapeseed and soy production for use in animal feed and biofuels.