US food and agribusiness group Bunge has formed a joint venture with Chinese state-owned grain company Sinograin to develop and operate a soybean processing plant.
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Bunge is to own a 65% stake in the operation, which will be housed in Dongguan in Guangdong province. The site will be Bunge’s first plant in southern China. The company already has three operations in China as a whole.
Bunge said that the venture remains subject to government approval but if it gets the go-ahead construction of the plant, which will be located between Guangzhou and Hong Kong, is expected to be completed in late 2008.
The facility will produce soybean meal for the large livestock production industry in Guangdong and soybean oil for nearby urban markets.
“Combining Bunge’s global supply chain and risk management expertise with Sinograin’s domestic distribution network will make this plant an efficient addition to the Chinese crushing industry,” said Christopher White, CEO of Bunge Asia.
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By GlobalData“We expect the partnership between Bunge and Sinograin to make a valuable contribution to meeting the growing demand for food in an important region in China.”
