Bunge to Acquire Majority Interest in Tianjin, China, Soybean Processing Plant

24/04/07 Bunge Limited announced the establishment of a joint venture to operate a soybean processing plant in Tianjin, China, with Chia Tai (Tianjin), 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.

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 percent, respectively, since 1999, according to USDA statistics.

"We are pleased to partner with Chia Tai to form this joint venture," stated Christopher White, CEO, Bunge Asia. "We expect that the plant, given its strategic location and potential synergies with our existing plants in Rizhao and Nanjing, will enable Bunge to better serve China's expanding meal and oil markets."

The plant, which began operations in 1996, has daily crushing capacity of 1,000 metric tons. Under the joint venture, capacity will be expanded to4,000 metric tons. Bunge will supply the plant from its soybean origination networks in North and South America.

"This 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," said White. "We look forward to a successful partnership with Chia Tai that benefits both companies and our customers."