World Grain - October 2019 - 16

NEWSREVIEW

CHS increases soybean capabilities with expansion
ST. PAUL, MINNESOTA, U.S. - CHS Inc. is expanding
its Fairmont, Minnesota, U.S., soybean processing plant.
Construction is underway and expected to be completed by
fall 2021.
"CHS is always looking for ways to expand market access
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Scott Erdal, director of risk management and business development. "This renovation project will deliver value on several
fronts. The processing expansion and improvements will allow CHS to grow market access, add value to our owners,
capitalize on consumer demand for protein and ensure continued safe operations for our employees and the communities
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The operational and safety improvements will increase the
Fairmont plant's soybean crush and soybean oil production
capacity, enhance product quality and optimize production at
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CHS said soybeans at the Fairmont facility will be processed
into oil and then transported to the Mankato processing plant
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serves food and feed ingredient companies across the United
States and many export destinations.
"Regional livestock expansion has created new demand for
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crush capacity at Fairmont and help us optimize our Mankato
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Bunge buys stake in Brazilian grains and inputs company
SÃO PAULO, BRAZIL - Bunge is acquiring a 30% stake
in a Brazilian-grain sourcing business, Agrofel Grains and
Inputs.
Agrofel's business focuses on 15,000 farmers supported by
38 units, including warehouses and stores, with a combined
capacity of 450,000 tonnes and 470 employees. Founded in
Palmeira das Missões, Rio Grande do Sul, Agrofuel works
with seeds, fertilizers, plant nutrition, pesticides, and receiving, buying, selling, exchanging and storing grain.
"Combining Agrofel's broad relationship and expertise with
local producers with our logistical management and existing
origination capacity in Brazil is ideal for us to increase our origination capability in one of the most relevant soybean growing

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Bunge said the deal is a part of its strategy to strengthen its
grain foothold in Brazil. Agrofuel operations includes sourcing more than 1 million tonnes of grain annually, including
soybeans, corn and wheat.
"We share the same values and principles focused on ethics and sustainable production and believe that this transaction maximizes opportunities for both companies to expand
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chairman of the board of Agrofel. "Bunge has experience in
risk management and complete logistics capacity and relying on this expertise puts us on another level in the country's
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Interflour receives loan from CBH, Salim Group
6,1*$325( ² ,QWHUÀRXU D MRLQW YHQWXUH EHWZHHQ WKH
Australian-based CBH Group and Indonesia's Salim Group,
will reportedly receive nearly $60 million from the joint venture partners to help balance its books.
CBH advised its grower members on Aug. 27 that a $30
million (A$42 million) shareholder loan has been provided to
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WXUQDURXQGSODQDQGEDODQFHFXUUHQWGHEWDQGHTXLW\OHYHOV´
,QWHUÀRXU RI ZKLFK &%+ KDV D  LQWHUHVW LV ZHOO SURgressed on a turnaround plan implemented last year amongst
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and malting industries, CBH said.
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million on capital and maintenance expenditures, including
approximately $100 million for a malting facility in Vietnam
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equity from CBH and with the majority of this being funded
by debt.
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Malaysia, Vietnam, the Philippines and Turkey.
:DOO\1HZPDQFKDLUPDQRI&%+VDLGWKH,QWHUÀRXUPDQagement team was acutely aware of the headwinds facing the

business and has developed and is robustly progressing a turnaround plan.
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is on track to improve underlying performance for the year
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operations as part of a wide-ranging turnaround plan.
"While solid progress has been made to date, further work
will continue to improve the performance of the recently comPLVVLRQHGPDOWIDFLOLW\LQ9LHWQDPDQGWKHQHZÀRXUPLOOLQ
the Philippines.
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solid long-term growth story as the region urbanizes, incomes
rise and diets change. The turnaround plan and shareholder
loan that has been put in place will maximize the opportunity
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impact network investment or any other operations within
the group.

16

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World Grain - October 2019

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