Bunge forms joint venture with CPG
Fertilizer and oilseeds producer Bunge Ltd signed a joint venture with Thailand-based Charoen Pokphand Group (CPG) to acquire a majority interest in and operate a soybean processing plant in Tianjin, China. Financial terms of the deal were not disclosed.
The soybean processing plant is part of the
Thailand-based Charoen Pokphand Group. Bunge will hold a majority interest in
the venture and will manage operations at the plant, its third in China. Located
near a modern port, the plant will supply the fast-growing livestock and feed
industries and the large consumer market in the greater Beijing
area.
Feed and food growth
Driven by rapid commercialization of its meat and
feed industries and strong growth in food consumption overall, China’s soybean
meal and soybean oil consumption have risen at compound annual rates of over
11%percent and 13%, respectively, since 1999, according to USDA
statistics.
Capacity
The plant, which began operations in 1996, has
daily crushing capacity of 1,000 metric tons. Under the joint venture, capacity
will be expanded to 4,000 metric tons. Bunge will supply the plant from its
soybean origination networks in North and South America.
Expand
in China
The joint venture is consistent with Bunge’s strategic
intent to expand its integrated business in China and to work with established
and respected partners in the country’s most dynamic regions.
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