October 28, 2011
China Grain Reserve Oils and Fats Co, an affiliate of the China Grain Reserves Corp (Sinograin), has signed a cooperation agreement with Beijing Grain Group Co (BGG) on Wednesday (Oct 26) to jointly build a new vegetable oil processing plant in Tianjin.
Under the agreement, the two parties will invest RMB1.5 billion (US$235 million) to build an oils and fats project in Tianjin Harbour, the main maritime gateway to Beijing. The oils and fats plant is expected to process 1.5 million tonnes of soy and refine 450,000 tonnes of raw vegetable oils per year after it is completed. Meanwhile, they also agreed to build a warehouse with stocking capacity of 350,000 tonnes.
"The Tianjin project is just the beginning of Sinograin Oil and the BGG strategic partnership and also an important part of the grain security system being built in the Beijing-Tianjin-Hebei region," said Wang Guofeng, general manager of the BGG. "This move will also help tame inflation and ensure stable supply for the domestic market."
Sinograin Oil, a subsidiary of Sinograin for operating oils and fats business across China, plays a key role in Beijing in the overall control of oils and fats supply. The BGG, a Beijing-based grain company, specialises in grain purchases, stockpiling, processing and production, and marketing.