Chinatex plant takeovers boost crushing capacity
Source: ctei Date: 2009-11-10
BEIJING, Nov 9 (Reuters) - State-owned Chinatex Grains & Oils Import and Export Corp, a subsidiary of top China cotton trader the China National Textile Group Corp, has steadily taken over soy plants and has now holds the country's the third largest soy crushing capacity.
The takeover of the 3,000-tonne-day Fuhong plant in the southern province of Guangdong last week boosted Chinatex's soy capacity to about 20,000 tonnes a day, the China National Grain and Oil Information Center said in a report.
The company now ranks third in terms of total crushing capacity after Singapore-based Wilmar International (WLIL.SI: Quote, Profile, Research) and Heilongjiang Jiusan Oils and Grains Industry Corp Ltd.
China Textile has also begun construction of a brand new soy plant in the port city of Rizhao, Shandong province. The plant has daily capacity of 4,000 tonnes, the company said on its web site (www.chinatex.com).
China's cabinet has warned of over-capacity in soy crushing industry. China's top planning body official said half of the country's 80 million tonne-year capacity was not operating and encouraged big firms to take over small ones. [ID:nPEK112772].
China, the world's largest soy buyer, imported a record 41 million tonnes of the oilseed to crush into edible oil and soymeal, a feed ingredient, in the year ending September, accounting more than half of world total soy trade.
Besides Chinatex, state-owned Cofco Co. Ltd, the country's largest grain trader, is also expanding its oilseed business in Tianjin and Guangxi.[ID:nPEK323109].
