WHITE PLAINS, N.Y., Jan. 11 /PRNewswire-FirstCall/ -- Bunge Limited today announced an agreement to purchase an integrated soybean crushing and refining plant in the port city of Nanjing, Jiangsu Province, China, from Dalian Huanong Group Ltd. The plant, Bunge's second in the country, will link the company directly to customers in the expanding soybean meal and oil markets in Jiangsu and Anhui provinces and other Yangtze River regions.
Driven by rapid commercialization of its meat and feed industries, China's consumption of soybean meal has risen at a compound annual rate of over 13 percent since 1999, according to USDA statistics. Last year the country's share of total global soybean meal consumption was approximately 17 percent. As China's largest river port and a critical transfer point for river, road and rail logistics in the Yangtze River region, Nanjing provides access to some of the largest and fastest-growing meat producing and oil consumption regions in China.
"Purchasing the Nanjing plant is an ideal second 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. We foresee good synergies with Bunge's existing joint venture in Rizhao, and expect to be able to service a broader and deeper customer base in the Chinese animal feed and meat production industries."
The plant, which was constructed in May 2004, has daily crushing and refining capacities of 2,000 and 300 metric tons, respectively. It is located adjacent to soybean discharge facilities in the port of Nanjing. Bunge will supply the plant from its soybean origination networks in North and South America.
"We look forward to developing our business in Jiangsu, Anhui and the Yangtze River region and continuing the good cooperation we have established with the Port of Nanjing and Nanjing Municipality," said White.
The purchase is expected to close in the first half of 2006.
About Bunge
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. http://www.bunge.com/
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