COFCO held the agreement signing ceremony for its starch sugar project of Yangluo Base in Wuhan, Hubei Province on October 18. China Agri will invest RMB 500 million in building the starch sugar base with the yearly capacity of 100,000 tons.
COFCO’s senior management and locla government officials attended the ceremony.
As Mr. Ruan Chengfa, Mayor of Wuhan, said, Wuhan had rich resources which COFCO could utilize. Mr. Patrick Yu, President of COFCO, expressed his gratitude and said, COFCO was deepening its investment in Wuhan which was instrumental in integrating its business.
The starch sugar project of COFCO’s Luoyang Base is located at the northern part of the industrial park of Luoyang City, covering 230 Chinese mus in area. Phase I will be completed by next July, producing 100,000 tons of F55 high fructose syrup annually and contributing RMB 18 million in taxes. Phase II mainly produces fuild barley malt syrup and high fructose syrup which are supplied to Coca Cola, Pepsi, Uni-President and other well-known food and beverage companies home and abroad. Phase II will be completed in 2012, producing 300,000 tons of starch sugar annually, making about RMB 1 billion in sales revenues and contributing over RMB 30 million in taxes.