Cargill JV opens $100m oilseed plant in north China
Covering 21,000 square metres, the Hebei Jiahao Grain & Oil plant was constructed at a cost of US$100m and will have an annual capacity of over 1.3m tonnes. It will be used by Cargill to supply the growing regional market.
The investment was spurred by China’s desire to to drive more coordinated development in the Beijing-Tianjin-Hebei region, backed by regional and Beijing authorities.
The plant will be served for transportation and storage by the newly opened Jihai Port, also in Hebei province, with a capacity of 100,000 tonnes.
“These investments in the new oilseeds plant and Jihai Port reinforce Cargill’s strong commitment to China, a strategic market for us,” said David MacLennan, the company's chairman and chief executive.
MacLennan also voiced his appreciation for the “strong support” the company received from China’s government, which is eager to improve the fortunes of Hebei, which is less developed than neighbouring provinces.
“The plant and port will also help in the coordinated development in the Beijing-Tianjin and Hebei regions, which are of great significance to China,” he added.
Angela Liu, chair of Chinese agriculture major New Hope Liuhe, said her company’s integrated supply chain would lead distribution for the joint venture.
“With shared visions and combined advantages of all the parties, we believe this project will lead to deeper cooperation and will contribute to the development of local economies and related industries,” she said.
The Hebei plant is Cargill’s fourth oilseeds processor in China and the first in the north. It will also supply a regional population of 300m.