Bunge Agrees to Purchase Soybean Processing Plant in China
July 10 2005 - 8:30PM
PR Newswire (US)
Bunge Agrees to Purchase Soybean Processing Plant in China WHITE
PLAINS, N.Y., July 10 /PRNewswire-FirstCall/ -- Bunge Limited
(NYSE:BG) today 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 Rizhao plant is
a solid first step for Bunge in China," stated Christopher White,
Regional General Manager - Asia. "It is an efficient facility that
is well-located in a valuable and expanding market. By linking the
plant to Bunge's global oilseed origination, risk management and
logistics systems, we will provide feed and meat customers in the
Shandong region with a reliable supply of high quality feed
ingredients that will enable them to expand their businesses." 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's strategic intent is to
expand its integrated business into China as we build our execution
competencies and as good opportunities arise," said White. "In the
meantime, we look forward to developing our business in Shandong
and to continuing the good cooperation we have established with
Sanwei, the Rizhao Port, Rizhao City, and Shandong Province." The
purchase is expected to close in September of this year. About
Bunge Limited Bunge Limited (http://www.bunge.com/) 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. DATASOURCE: Bunge Limited CONTACT: Investors - Susie
Ter-Jung, +1-914-684-3398, Susie.Ter- , Media - Stewart Lindsay,
+1-914-684-3369, , both of Bunge Limited Web site:
http://www.bunge.com/
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