Soy protein plant under way
protein has got under way in Xinxiang City, Henan province. The
venture includes three Chinese companies and is thought to be one
of the largest of its kind in the country.
According to a Financial Times report the venture will cost an estimated This joint venture will be injected into CNY 220 million (€22.4 million) and the facility will occupy a 10 hectares site. Shaanxi Shiyang Group will contribute 60 per cent of the total investment for the project, while Shandong Jiaguan Oil & Fat Chemical will make 20 per cent and the Xinxiang Grain, Oil and Feedstuff Corporation will contribute 20 per cent.
The three companies jointly announced that the venture is to be named Henan Bangqi Oil Technology Co., Ltd. Groundbreaking for the project was begun in March 2004 and construction is now said to be in full swing.
As demand for soybean products remains strong in China the industry there is still a net importer of the commodity as there is not enough adequate arable land to farm it. Currently it is both North and South American soybean farmers who are benefiting from this trend.
With regards the processing of soybean, the industry in China is still struggling to meet demands, which is why the Chinese government is keen to promote the proliferation of more soybean processing ventures. China's share of the soybean processing market has fallen over the past ten years, in contrast to the steep rate of development in both North and South American.
According to figures from the Food and Agribusiness Management Group, China's share of the global soybean processing market dropped from 9 per cent in 1990 to 8 per cent in 2003, a relatively low figuring considering the high rate of soybean consumption in the country. Undoubtedly if the country is to rise to the challenge of meeting its population's growing demands for soybean produce, this will necessitate a steep increase in the number of both processing ventures and soybean farming.
The company says that it will begin its operations in December of this year. Eventually production will be ramped up to 18 million tons of soybean vegetable protein a day, which will amount to the company's target production capacity of 500,000 tons.
The main aim of the venture is to produce feedstuff for the meat and dairy sector. The company says that it is aiming to process approximately 400,000 tons of soybean protein for the feed sector, with the rest of the capacity being devoted to the edible vegetable oil market.
The company said that it was aiming for an annual sales turnover of CNY 1.5 billion, with a profit margin of approximately CNY 35 million.
The three investors expect that this joint venture will reach an annual turnover of CNY 1.5 billion, including taxes and profits of CNY 35 million.
