ASIA – Leading agribusiness company, Cargill has said that it will invest US$112 million at its corn processing facility in Songyuan, Jilin, China in capacity expansions.
This is part of the joint initiative between Cargill and Songyuan government to build the Sino-US Cargill Biotech Industrial Park, featuring the Cargill Food Safety and Technology Center.
The company said it will continue to invest in the park as part of its contribution in boosting the local economy and strengthening local corn processing industry.
The park was designed to facilitate corn processing and trading with a processing capability of up to two million tons per year by 2020.
Cargill plans to establish warehouses at the site to accommodate commodities such as corn and starches.
The Cargill Food Safety and Technology Center will focus on testing, research and training in the area of food safety as well as process improvement and product development for the corn processing and food ingredients industries.
“Cargill has made significant investments in Songyuan, which is welcomed by us,” said Mr. Wang Zilian, mayor of Songyuan Municipal Government.
“I believe the new investment and projects will help boost the prosperity of local farmers and also benefit the growth of local corn processing industry.”
The park will also host other companies including AIPU Food Industry Co., which has partnered with Cargill to construct 150,000-ton project to produce caramel pigment.
The investment further strengthens Cargill’s presence in China, where it has committed a series of investments to expand capacities in starches and sweeteners, animal protein and agricultural supply chain businesses.
The company said since its debut in China, it has invested about US$7.5 million in both capacity and portfolio expansions.
“China is crucial market with amazing vitality. We will continue to work as partners with China to build sustainable agriculture and invest in rural areas,” said Dave MacLennan, Cargill chairman and CEO at the foundation laying ceremony for Cargill Food Safety and Technology Center.
Speaking on the investment, Jerry Liu, president of Cargill China said: “The park welcomes companies along the corn processing and trading value chain.
“They will enjoy convenient services and easy access to resources at the park, including a supply chain to connect their products with domestic and overseas market.
“We are grateful for the ongoing support of Jilin and Songyuan governments as we continue to invest in this region, working with the government, partners and farmers to meet customer demands.”
Recently, the company announced it is investing US$40 million in Yichun of Jiangxi Province to build an animal nutrition plant with annual production capacity of 120,000 tons of premix and 60,000 tons per year of specialty animal feed.