Cargill opens oilseed facility in China

by Holly Demaree
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Finished products will include animal feed  and oil, which will be marketed in northern China.
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BEIJING, CHINA — Cargill, New Hope Group and Hebei Bohai Investment Group have launched a $100 million oilseeds processing plant with an annual processing capacity of 1.32 million tonnes in Huanghua, Cangzhou, in Hebei Province of China. The plant will help meet the growing demand for high quality food products in Northern China, drive the development of the local economy, and facilitate its integration into the Beijing-Tianjin-Hebei region.

The plant, Hebei Jiahao Grain & Oil Co Ltd, covers 21,000 square meters in the Bohai new development area, which is the largest national economic development zone along China’s east coast. Finished products will include high quality oil and animal feed, which will be marketed in northern China, including in the Beijing-Tianjin-Hebei region.

According to Cargill, the investment in the plant is in line with China’s strategy to drive more coordinated development in the Beijing-Tianjin-Hebei region. China aims to enhance synergies within the region and enable economic growth in the relatively less-developed Hebei province.

The company also announced the opening of Hebei Jihai Port Co, Ltd (Jihai Port), which manages a bulk and general cargo berth with a capacity of 100,000 tonnes. Jihai Port will serve the transportation and storage needs of the new plant for both domestic and international trade.  It will connect Huanghua and Cangzhou to the global grain and food trade. Total investments in the Jihai Port have exceeded $100 million.

“These investments in the new oilseeds plant and Jihai Port reinforce Cargill’s strong commitment to China, a strategic market for us,” MacLennan said. “They will also help in the coordinated development in the Beijing-Tianjin and Hebei regions, which is of great significance to China. We are incredibly grateful for the strong support we have received from the government during the construction and from our customers during the trial period.”

Angela Liu, board member of New Hope Group and Chairlady of New Hope Liuhe Co., Ltd., said the company hopes to meet market demand in China with this new facility.

“As one of China’s largest food and modern agriculture enterprises, New Hope has been closely watching the market trends,” Liu said. “With the consumption upgrading in China, we hope to meet the market demand for quality and nutritious food by leveraging our integrated supply chain that comprises both agriculture and animal husbandry. We are pleased to enter into cooperation with Cargill, and we regard highly Cargill’s resources and advantages in food and agriculture. 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.”

Cargill already has three oilseeds processing plants in China, which are all situated in Southern China and the Yangtze River delta. This new plant in Huanghua will enhance the company’s oilseed processing capabilities and help it to better meet the growing demands of customers in China, many of whom are expanding their national presence. 
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