November 18, 2015
Cargill reveals growth plans in Vietnam
Cargill has revealed plans for a new US$30 million animal feed mill in Binh Duong province and a US$10 million agreement with Saigon International Terminals Vietnam (SITV) for dedicated grain and oilseeds warehousing facilities in Phu My. The company is also committing to building 25 more schools across rural Vietnam by 2020.
Cargill chairman and CEO David MacLennan said, "Vietnam represents a very important market for us globally and presents clear growth opportunities. This year, we celebrate 20 years in the country during which we have leveraged our access to global markets and 150-year industry expertise to help contribute to the development of the agriculture sector here. These new investments and the extension of our school building program only reinforce our commitment to the Vietnamese market and its people."
The US$30 million new animal feed mill in Binh Duong will have a total capacity of 260,000 tonnes per year and will become operational in the first half of 2017. It will incorporate the latest technologies currently available in the industry. The feed mill will bring Cargill's total number of animal nutrition production facilities in Vietnam to 12.
In Vietnam, Cargill currently has 10 animal feed mills that produce compound feed for both livestock and aquatic species, and one facility in Dong Nai which provides premix animal nutrition ingredients to feed manufacturers and vertically integrated producers.
The US$10 million agreement with SITV will provide 80,000 tonnes of warehousing facilities at the SITV port in Phu My. This will facilitate the storing and distribution of grains and oilseeds for Cargill's customers and give them a distinct competitive advantage.
The main grain and oilseeds products Cargill supplies to its customers in the country include soymeal, wheat, corn, copra meal and canola meal. Customers include animal feed producers and integrated fish processors.
Cargill is extending its school building programme to build 25 additional schools by 2020. The employee-led volunteering programme aims at providing better education to less privileged children in rural Vietnam. Cargill has raised more than US$3.8 million for the programme and has achieved its goal of building 75 schools by 2015. More than 13,000 children have benefitted from the programme so far.
"Giving back to the communities we live and work in is in our company's DNA. Every child deserves an education and what our Vietnam team has achieved with their school building initiative is nothing short of remarkable," said MacLennan.
MacLennan is in Vietnam from November 16 to 19 to commemorate with the company's more than 1,500 employees, its customers, dealers and partners, Cargill's 150th anniversary and 20 years in the country. During his visit, he inaugurated a school in Phu Xuyen province - the 75th school that Cargill has built across Vietnam.