July 28, 2006


New Hope Group launches trading platform 



Chinese feed giant the New Hope Group is set to unveil an effective logistic and trading system that will serve as an international platform for enhanced commodity trading in the China and neighbouring South-east Asian or Asean regions.


Kunming and Nanning in China, and Vietnam's Ho Chi Minh City are the three cities where the "O-Park" will be built.


Elaborating, president of the New Hope Group Liu Yonghao said: "Such a commercial logistics system will lay the groundwork for further collaboration and business exchange through expositions, trade and manufacturing, and strengthen the cooperation between China and its Asean neighbours in south."


The O-Park "grouping", comprising individual O-parks in the three locations, is expected to leverage on a geopolitical strategy of benefit, particularly for the producers and suppliers in these cities and the surrounding regions. Already, an estimated 4,000 businesses have tendered for Kunming's 800,000 sq metre O-Park, slated to open by year-end to a tune of US$250million.


In Nanning, groundbreaking for a US$300million O-Park will begin this October, completion of which is expected by December 2008. Capital for this project is expected to come from the provincial level: a 50th anniversary funding for the Guangxi Zhuang autonomous region. 


Work is currently ongoing at the Ho Chi Minh City O-Park, with investments totalling US$350 million.