Bunge, Estron Building Ukraine Oilseed Plant

WHITE PLAINS - May 17/04 - SNS -- Bunge Europe and Estron Corporation will build an oilseed crushing plant in the port of Ilyichevsk, Ukraine in a 50-50 joint venture.

The new plant is adjacent to the grain export terminal owned by Estron Corporation. The plant's projected crushing capacity is 600,000 tons per year, and it is expected to be operational in early 2005.

The plant, as a client of the terminal, will have access to the terminal's expanded capacity of 240,000 tons of storage space with two panamax vessel loaders.

"Bunge's strategy is to be the leading agribusiness and food company in the higher growth markets. This investment reflects the confidence of the joint venture partners in the long-term agricultural potential of the Ukraine," said Jean-Louis Gourbin, CEO of Bunge Europe.

"The port of Ilyichevsk is ideally suited as a logistics gateway to service and supply the Black Sea, Mediterranean, and Near East vegetable protein and oil markets," noted a spokesperson for Estron Corporation.

Products from the new plant will be marketed by Bunge. Sunseed and other oilseeds for processing will be originated locally by Suntrade, Bunge's Ukrainian origination company, which has been active in the region since 1998.