China National Cereals, Oils and Foodstuffs Corp (COFCO) has transferred two of its biofuel subsidiaries to a sister company in a restructuring effort to streamline operations.
The company sold COFCO Biofuel Holdings and COFCO Biochemical Holdings to COFCO Bio-chemical Investment Co for HK$8.6bn (US$1.1bn), Caixin reported on 25 October.
The transferred interests included the production and sale of corn ethanol in addition to feed ingredients and crude oil.
The company shuffled the subsidiaries as part of an ongoing restructuring process with a goal to form 18 more focused firms and to avoid cross-sector company ownership, a COFCO employee told Caixin.
COFCO had completed similar transfers on several occasions over the past two years, with the subsidiaries including a chateau, the Fortune edible oil brand and wine label Great Wall.
The firm hoped the transfer would help its biofuel subsidiaries cope with an increasingly challenging market, brought on partially by China’s phase-out of biofuel subsidies.