Joint venture for corn sweeteners

- Last updated on GMT

Related tags: Joint venture, People's republic of china

China-based corn processor Global Bio-chem Technology Group Co Ltd
said last week it had signed an agreement with U.S. multinational
agribusiness giant Cargill Inc to form a joint venture to make corn
sweeteners.

China-based corn processor Global Bio-chem Technology Group Co Ltd said last week it had signed an agreement with U.S. multinational agribusiness giant Cargill Inc to form a joint venture to make corn sweeteners. Global Biochem said in a statement the 50-50 joint venture, to be set up in Hong Kong, would invest in the manufacture and sale of sweeteners and other products from the bio-fermentation of corn and starch in mainland China. It did not give the value of the contract. The joint venture's first investment will be a refining plant to be built in Shanghai to make High Fructose Corn Syrup (HFCS) - a corn sweetener widely used in the food and beverage industry. Cargill is already a major supplier of HFCS to the global food and beverage industry. "This agreement signifies a major step in the strategic partnership and business cooperation between the company and Cargill,"​ Global Bio-chem chairman Liu Xiaoming said. He added the joint venture would become an important vehicle for penetrating the mainland's biochemical industry. "We are very optimistic for our future in the HFCS market, as well as the opportunities in the biochemical industry in the PRC (People's Republic of China),"​ said Pat Bowe, president of Cargill's North American Sweeteners business. Cargill Inc took 7.5 million shares, a 0.59 percent stake, in Global Biochem at the time of the company's initial public offer and listing in Hong Kong in March of this year. The company, which has a market capitalisation of HK$2.5 billion, had earnings of HK$230.2 million in the year ended December 2000, an 87.5 per cent rise on the previous year. Global Bio-chem's shares closed HK$0.06 or 3.17 percent higher at HK$1.95 last week prior to the announcement. Source: Reuters

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