Bunge in Chinese Soybean Plant Venture

NEW YORK - Jul 26/07 - SNS -- Bunge and China's Sinograin will build and operate a soybean processing plant in Dongguan, Guangdong Province, China. Bunge will hold a 65% interest in the plant, which is subject to government approval.

Construction of the plant, which will be located between Guangzhou and Hong Kong, is expected to finish in late 2008. The facility will have a daily processing capacity of 4,000 metric tons (MT) of soybeans, and will be connected directly to discharge facilities at Dongguan port via Sinograin's existing warehouses and conveyor systems. It will produce soybean meal for the large livestock production industry in Guangdong and soybean oil for nearby urban markets. Guangdong Province boasts one of the highest per capita incomes in China.

China's soybean meal and soybean oil consumption have risen at compound annual rates of over 11% and 15%, respectively, since 2000, according to USDA statistics.