Bunge and Sinograin to Build Joint Venture Soybean Processing Plant in Dongguan, China

27/07/07 Bunge Limited announced the establishment of a joint venture to build and operate a soybean processing plant in Dongguan, Guangdong Province, China, with Sinograin, the Chinese state-owned grain company. Bunge will hold a 65 percent interest in the plant, the company's first in southern China and fourth in the nation. The venture is subject to government approval.

Construction of the plant, which will be located between Guangzhou and Hong Kong, is expected to finish in late 2008. The facility will have a daily processing capacity of 4000mt of soybeans, and will be connected directly to discharge facilities at Dongguan port via Sinograin's existing warehouses and conveyor systems. It will produce soybean meal for the large livestock production industry in Guangdong and soybean oil for nearby urban markets. Guangdong Province boasts one of the highest per capita incomes in China.

"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," stated Christopher White, CEO, Bunge Asia. "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."

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 15 percent, respectively, since 2000, according to USDA statistics.