Chongqing Grain to open soybean complex in Brazil

Chongqing Grain (CGG), China’s state-owned grain company, plans to invest $500m to establish a soybean complex in Bahia, Brazil.

Initially, the company will build a $100m soybean pressing facility, which is expected to be complete by the end of 2012 and operational by 2013.

This facility will produce 1.5 million tons of cooking oil a year for the Chinese and Brazilian markets.

Following this, the company plans to build soy refineries and processing plants for bio-diesel fuel and soy lecithin products.

CGG president Hu Junlie said that establishing a high-quality soybean base with Brazilian farmers, offering services, including storage and logistics, is the company’s main goal in the Brazilian market.

"With the establishment of a comprehensive industrial chain, our purchasing cost for soybeans will be greatly reduced," Junlie added.

Recently, the company announced plans to invest 5.8bn yuan ($914m) to plant 600,000t of soybeans on 200,000ha in Brazil.