Bunge to buy soybean processing plant in China
Driven by rapid commercialization of its meat and feed industries, China's consumption of soybean meal has risen by an average annual rate of 11 percent since 1998.
11/07/05 Bunge Limited has announced that it has agreed to purchase a controlling interest in an integrated soybean crushing and refining plant in the port city of Rizhao, Shandong Province, China, from Sanwei Group Ltd. The plant, Bunge's first in the country, will link Bunge directly to customers in the expanding soybean meal and oil markets in the Shandong region. Sanwei will retain a minority interest in the newly created joint venture company.
Driven by rapid commercialization of its meat and feed industries, China's consumption of soybean meal has risen by an average annual rate of 11 percent since 1998. The USDA estimates that the nation will consume around 22 million metric tons this year, which represents roughly 16 percent of global consumption. Shandong province is one of the largest and fastest-growing meat producing regions in China and it also has one of the highest levels of per capita vegetable oil consumption of any province in the nation.
The plant, which was constructed in 2003, has daily crushing and refining capacities of 2,300 and 400 metric tons, respectively. It is located adjacent to soybean discharge facilities in the port of Rizhao. Bunge will supply the plant from its soybean origination network in North and South America.
Bunge Limited is an integrated, global agribusiness and food company operating in the farm-to-consumer food chain. Founded in 1818 and headquartered in White Plains, New York, Bunge has 25,000 employees and locations in 32 countries. Bunge is the world's leading oilseed processor, the largest producer and supplier of fertilizers to farmers in South America and the world's leading seller of bottled vegetable oils to consumers.
