China’s New Hope, Cargill Forming Soybean Crushing JV
China’s New Hope Group and U.S.-based Cargill have formed a joint venture to build a soybean crushing plant with the capacity of 50,000 tons per day in China’s Hebei Province.
New Hope, along with provincial state-owned companies, will own a majority 51 percent of the venture, while Cargill will hold the remaining 49 percent.
China’s soy crushing likely reached 76 million tons last year, according to the U.S. government, however this benchmark is far below the country’s total capacity, and lags behind the demand being generated from the country’s livestock sector, particularly hog and poultry producers.
This tie-up with Cargill preludes New Hopes plans for international expansion. The company, which already had offices in Australia and Singapore, is currently establishing a European headquarters in the Netherlands and has plans for an office in the U.S. The group is also establishing poultry and hog farms in Vietnam, and has an eye toward expanding into more densely populated countries such as Indonesia.