GrainCorp, Zen-Noh Partner in Canada
NEW YORK - Dec 15/15 - SNS -- Australia's GrainCorp and Japan's Zen-Noh Grain Handling have entered a 50-50 partnership aimed at expanding their origination capabilities in Canada.
GrainCorp already operates two container loading sites and a malting business from a site in Calgary, Alberta, where the joint venture will be based.
The joint venture is designed to expand the company's access to grain procurement, and will operate grain receival sites across Alberta and Saskatchewan.
Each party will contribute $30 million to get the project started, and the joint venture will seek to borrow a further $60 million.
GrainCorp CEO Mark Palmquist said expanding the company's access to Western Prairie grain and oilseeds will mean it can better serve end-users with more consistent exports. The expansion into Canada also means the company's exposure to bad weather and fluctuations in transport costs in single countries is reduced.
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