August 19, 2014
Noble Argentina to buy shares in CHS's export terminal
CHS Inc, a North American farmer-owned company that deals with grains and food, has reached an agreement with Noble Argentina S.A., permitting the latter to acquire a portion of CHS's shares in an export terminal joint venture at Necochea, a province of Buenos Aires, Argentina.
CHS Argentina currently own 30% of Sitio 0 de Quequen S.A. (Sitio 0). After finalising the transaction, CHS and Noble Argentina, a subsidiary of Noble Grain Group Ltd., will each hold a 22.75% ownership in Sitio 0. Other terminal owners include South American grain companies E-Grain SA, A&J Nari SA, Alea y Companía SA and Lartirigoyen y Companía S.A.
"We are pleased to welcome Noble Argentina to this important export terminal venture," said Ignacio Bosch, the general manager of CHS Argentina. "For CHS, investing in this port on behalf of our farmer-owners allows us to efficiently serve our customers in Asia and elsewhere through access to a new, modern export facility in a key region of Argentina."
Currently under construction, the first stage of Sitio 0 will consist of an export terminal with 119,000 tonnes of storage capacity and a high-speed loader with 1,200 tonnes/hour capability at one pier.
A planned second stage would include an additional pier and 100,000 tonnes of storage. Sitio 0 has the right to use the Quequen port for 45 years. The first phase is expected to be operational by May 2015.
Necochea is located on the Atlantic Ocean, 528 km (328 miles) southwest of Buenos Aires at the mouth of the Quequen Grande River. CHS will use the terminal to load soy, corn, wheat and sorghum as well as barley and soymeal sourced from an area southeast of Buenos Aires.