April 5, 2018

Louis Dreyfus buys over China's Sinarmas, acquires oilseeds crushing sites

Louis Dreyfus Co. (China) Trading Co., Ltd. will buy over Sinarmas Natural Resources Foodstuff Technology (Tianjin) Co., Ltd., which has under its ownership oilseeds crushing and refining facilities in the Lingang Economic Area of Tianjin's Binghai New Area district, China.
 

Sinarmas' facility could produce a daily output of 4,000 tonnes of crushed soybean daily, which would then be used for making soybean meal and crude soybean oil.
 

According to Gonzalo Ramírez Martiarena, CEO of Louis Dreyfus Co. (LDC), the acquisition is a "positive response" to China's desire for "more foreign direct investment in the agricultural processing sector." This move is also in line with the company's corporate strategy of bolstering its presence in major markets and strengthening its foothold in the group's key businesses. 

LDC provides soybeans to the Chinese crush industry and operates three soybean crushing facilities in Hebei, Jiangsu and Guangdong provinces. In addition, it supplies soybean meal to local feed mill groups which make animal feed.

James Zhou, LDC's regional head of North Asia, said that the group anticipates partnerships with "local peers to create growth opportunities as well as to promote the productivity and innovation of the Chinese agricultural industry as a whole."