November 15, 2010

Dongling Grain & Oil to build second soy production line

Dongling Grain & Oil Co Ltd plans to construct a second 5,000-tonne/day soy processing and production line with an approximately RMB340-million (US$51-million) fixed-asset investment.

The project is to be constructed by its wholly owned subsidiary Guangzhou Zhizhiyuan Oil Industrial Co in Xin'an Industrial Park in Nansha District, Guangzhou city, covering about 45,000 square metres. The project will comprise a soy pretreatment for processing and canning line and support silos, boiler room and power distribution devices.

Dongling's board of directors has approved of the new construction. Sources of the investment funds will come out of its self-raised money and bank loans. The company's project loans are estimated to increase RMB260 million (US$39 million) upon the construction.

The project can raise Dongling's soy processing capacity by 1.5 million tonnes annually, partly reducing the unit cost and improving operating efficiency and capital efficiency.