WHITE PLAINS, N.Y., April 20 /PRNewswire-FirstCall/ -- Bunge Limited today 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 to 4,000 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."
About Bunge
Bunge Limited (http://www.bunge.com/, NYSE: BG) is a leading global agribusiness and food company founded in 1818 and headquartered in White Plains, New York. Bunge's over 22,000 employees in over 30 countries enhance lives by improving the global agribusiness and food production chain. The company supplies fertilizer to farmers in South America, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers and supplies raw materials and services to the biofuels industry.
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This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue" and similar expressions. These forward- looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these forward- looking statements. The following important factors, among others, could affect our business and financial performance: our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances; estimated demand for the commodities and other products that we sell and use in our business; industry conditions, including the cyclicality of the agribusiness industry and unpredictability of the weather; agricultural, economic and political conditions in the primary markets where we operate; and other economic, business, competitive and/or regulatory factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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