July 27, 2007

Bunge forms joint venture with Chinese company to invest in soy plant
 

Agro firm Bunge said it is investing in a joint venture to construct a new soy processing plant in China, despite the already tense competition in the market.

The facility in Dongguan, Guangdong Province would be built and operated by Bunge and its partner Sinograin, a Chinese state-owned grain company. It is still subjected to government approval. Bunge will hold a 65-percent interest in the plant.

The facility will have a daily processing capacity of 4000 tonnes of soy, and will be connected directly to discharge facilities at Dongguan port via Sinograin's existing warehouses and conveyor systems.

The facility would provide soymeal for the livestock industry in Guangdong and soyoil for urban markets.

Construction is expected to finish in late 2008.

The new facility is the Bunge's first in southern China and fourth in the nation.

In April this year, Bunge announced another joint venture in the Chinese soy market with the Thai-based Charoen Pokphand Group.

Bunge said the agreement will grant it a majority interest in the running of a third soy processing plant within the country, aided by Charoen's Chinese subsidiary, Chia Tai.

According to USDA statistics, China's soymeal consumption have risen at compound annual rates of over 11 percent since 2000.